Sonera confirms merger talks with Telia
March 25, 2002 Posted: 3:07 AM EST
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| Sonera says too early to predict outcome of merger talks |
HELSINKI, Finland (Reuters) - Finland's largest telecom operator Sonera on Monday confirmed it was in merger talks with the region's largest operator Telia, but said it was too early to predict the outcome.
"Sonera will make no further comment until the circumstances necessitate further announcement," it said in a statement.
Finnish Prime Minister Paavo Lipponen said on Sunday that merger talks with Telia were being held, but declined to give further information.
The two state-controlled firms have repeatedly been reported to be in merger or cooperation talks over the past two years, and a link-up would create a carrier with a market capitalisation of around $17.2 billion which would be better placed to fight off challenges from larger European rivals.
Consolidation in the European telecom industry has largely been on ice for over a year, with many groups that spent freely in the tech and telecom boom of early 2000 instead focusing on getting their debt-heavy balance sheets under control.
But with Sonera's finances steadily improving and Telia in a strong financial position, analysts have said the time may be right for a merger, which would strengthen the two companies positions in relation to bigger European rivals.
