The Swedish-Finnish company TeliaSonera has fanned speculation of a bid from Norway’s Telenor. The news of the bid comes just days after the company rejected an offer from France Telecom as being too low.
Analysts see little financial logic behind a Telenor takeover because the two companies share the same Nordic market, though some say regional politics could favour the deal.
Telenor is worth about 25 billion euros. One source noted that it is unlikely to buy all of TeliaSonera because the degree of overlap is too big. It would also dilute the Norwegian company’s growth rates and its emerging markets profile.
Other market specialists warn that the linkup would trigger calls by competition authorities to sell their overlapping fixed-line and mobile operations in Denmark,Sweden and Norway. Such a selloff, they say, could eat into the deal’s benefits. Efforts to merge the two companies in the 1990s ended in failure.