France Telecom seeks USD15.6bn loan for TeliaSonera takeover - Rumour

Fri May 30 2008, 16:54 PM

France Telecom is seeking USD15.6bn (EUR10bn) in loans from a number of banks to fund a bid for Swedish telecoms firm, TeliaSonera, reports Reuters. According to bank sources, France Telecom initially approached five banks but is now in talks with more lenders in an effort to negotiate the best terms. The news follows Apr rumours that France Telecom was considering a possible takeover of TeliaSonera.

Deal Details

Speaking in Apr, France Telecom's finance director Gervais Pellissier said: "We are examining a number of companies, including TeliaSonera." The acquisition, which analysts claim could cost between USD31.8bn and USD54bn, would fit in with France Telecom's strategy of expanding into emerging markets and building next-generation services. While TeliaSonera is Swedish and Finish-owned, it also serves Lithuania, Latvia and Estonia.

The takeover rumours coincide with the Swedish government's attempts to sell its 37% stake in the TeliaSonera as part of a USD33.8bn privatisation drive. However, the government is currently preparing a security report - due to be delivered on Jun 13 - amid claims by Sweden's military that a foreign takeover of TeliaSonera could threaten the country's national security. The Swedish armed forces and other official bodies rely on TeliaSonera’s networks.