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Telia Finland to sell its 3G license soon

November 22, 2002

Sweden's Telia plans to sell its mobile operations in Finland within weeks as the merger with Sonera is expected to go ahead. The firm already has 95% acceptance from Sonera shareholders, passing the 90% threshold it needed.

Under the terms set out for the merger by European Union regulators, Telia is required to sell off its Finnish mobile operations.

Telia country manager Erik Hallberg said the company will try to sell as fast it can, but did not say which companies they are negotiating with.

The firm is one of four operators in Finland to be awarded with a 3G license and is of particular interest to foreign bidders. Companies with interests include Virgin Mobile, Hutchison Whampoa, Elisa Communications, DNA Finland and Internet services group Jippii.

Talks have been going on for about half a year and the result is expected soon. Analysts believe DNA and Virgin Mobile are the favourites, but many expects a Finnish winner.

A local news source said DNA was prepared to pay up to $100.2 million for Telia Finland, but some analysts said the figure could be too high and a more reasonable price would be between $50-100 million.

Elisa's spokesman Pekka Perttula said his company's bid for Telia was well below such a figure.

 


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