Johan Dennelind, the chief executive of Telia Company, has confirmed that the operator is interested in acquiring Denmark’s TDC, but that the price is too high. One major uncertainty for Telia is whether the Swedish government will agree to a rights issue to finance such a deal, which would dilute the state’s 37.3% stake in the operator. Enterprise Minister Mikael Damberg is reticent, merely saying that the government would be prepared to discuss the issue with Telia, and that it has no immediate plans to divest its holding.
The Telia management is keen to acquire Danish operator TDC, according to Dagens Industri sources. However, if Telia is to realise its plans, it will have to raise money to fund the deal through a rights issue to shareholders. TDC is valued at some SKr 40 billion. It is uncertain how the government, which owns a share in the operator, would react to such a move though.
The business daily also reports that TDC intends to take measures to avoid being bought out, and has plans to make an offer on Swedish broadband and cable operator Com Hem, valued at SKr 17 billion.