September 23, 2009 / 8:37 AM / 10 years ago

UPDATE 1-France Telecom denies new interest in TeliaSonera

* TeliaSonera shares jump on talk of France Telecom interest

* TeliaSonera declines to comment

* Analyst says tie-up still makes little sense

* France Telecom shares drop 1.0 percent (Adds analyst comment, background, updates shares)

STOCKHOLM/PARIS, Sept 23 (Reuters) - France Telecom FTE.PA on Wednesday denied renewed speculation it would revive its bid for TeliaSonera TLSN.ST after market talk had sent the Nordic telecoms firm’s shares higher.

TeliaSonera TLSN.ST shares rose as much as 5 percent in early trade on renewed market talk of interest from France Telecom .

“We deny having any discussions with TeliaSonera,” a spokesman for France Telecom said, adding that the French group was not interested in the company.

Shares in TeliaSonera, which declined to comment on the market talk, were up 3.0 percent to 46.9 crowns by 0817 GMT while France Telecom shares were down 1.0 percent 18.3 euros, falling behind a flat DJ Stoxx telcom index .SXKP.

A London-based trader pinned the rise in TeliaSonera shares on market talk that France Telecom was looking at the Nordic firm again at 60 Swedish crowns ($8.79) per share.

France’s leading telecoms group last year was forced to ditch a $40 billion hostile bid for TeliaSonera after a dismal market reaction, but has said it remains in favour of consolidation in the European telecoms market.

However, the company said in January that big merger and acquisition (M&A) deals were “impossible” for at least a year in the current financial markets.

Asked about TeliaSonera at the time, France Telecom Chief Executive Didier Lombard said: “All these fantasies that we are going to do something there again are totally out of the question”. [ID:nLE417098]

Trading in TeliaSonera shares was heavy with the volume after one hour of trading already representing 140 percent of the stock’s 90-day average daily volume.

A telecom analyst said the business sense of a tie-up of France Telecom and TeliaSonera remained murky.

“If this (rumour) is correct I don’t understand the basis for the deal. I have a hard time seeing any greater financial gains,” said the analyst who asked not to be identified.

“On the other hand, politics would be involved in a potential deal as well and not just economics.” ($1=6.824 Swedish Crown) (Reporting by Blaise Robinson and James Regan in Paris, Dominic Lau in London, Helena Soderpalm, Johan Ahlander and Mia Shanley in Stockholm; Editing by Hans Peters)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below