The board of TeliaSonera on Thursday rejected a cash and share offer by France Telecom which would give the Nordic telecoms company an equity value of up to SKr282bn ($47bn). France Telecom earlier confirmed an FT report that it had made an informal takeover offer for TeliaSonera to pay SKr63 in cash for 52% of TeliaSonera’s shares and in stock for the rest. France Telecom would borrow €17bn-18bn to fund the deal. TeliaSonera shares rose 7.4% to SKr57.75 on Thursday, giving it a market cap of SKr259.3bn while France Telecom shares were down 4% at €18.46. Swallowing TeliaSonera would certainly make France Telecom big, notes Lex. But whether France Telecom’s shareholders stand to benefit from the deal is more questionable.

This entry was posted by Gwen Robinson on Friday, June 6th, 2008 at 5:37 and is filed under Capital markets, M&A. Tagged with france telecom, teliasonera. Edit this entry.