France Tel says eyeing TeliaSonera, Telenor

PARIS (Reuters) - France Telecom (FTE.PA) is considering a bid for TeliaSonera (TLSN.ST) but is also exploring other options including with Telenor of Norway (TEL.OL), its finance director told the Financial Times.

France Telecom shares fell as much as 4 percent as investors were concerned a possible deal would weigh on the French telecoms operator's cash flows.

The news lifted Telenor shares 5 percent and pushed down TeliaSonera stock 1.8 percent.

"If you ask me whether we are examining a number of companies, including TeliaSonera, I would say yes," Pellissier told the FT in remarks published on Thursday.

"But if you are asking whether this is a full-blown examination, we are not there yet."

Pellissier added that either way, the French operator saw "no need to hurry."

France Telecom shares had lost 2.16 percent at 20.41 euros by 4:25 a.m. EDT, having shed 6 percent on Wednesday after Le Figaro first reported that France Telecom was considering a takeover of Nordic operator TeliaSonera.

"Our only comment is that we don't comment on speculation," said Jan Sjoberg, head of Stockholm-based TeliaSonera's group media relations. "If a bid would be presented, the board has the task to evaluate the bid for the benefit of all shareholders."

Telenor could not immediately be reached for comment.

TeliaSonera would give France Telecom a presence in new emerging markets such as Russia and Turkey as well as its Nordic business and boost its position in mobile Internet services.

Analysts said they were concerned the deal could weaken France Telecom's ability to remunerate shareholders and the acquisition would not create much in the way of savings since the two companies' operations had little regional overlap.

The French telecoms group on Wednesday declined to confirm whether it was looking at TeliaSonera but did not deny it.

It reiterated its acquisitions ambitions, which consisted of expanding in emerging markets and strengthening its position in western Europe.

(Reporting by Astrid Wendlandt; Editing by Quentin Bryar, Paul Bolding)