Page last updated at 08:59 GMT, Friday, 18 April 2008 09:59 UK

France Telecom eyes Nordic rival

France Telecom logo
France Telecom owns UK mobile operator Orange

France Telecom says it is in exploratory talks to acquire Nordic telecommunications firm TeliaSonera.

Buying TeliaSonera would be France Telecom's biggest deal since it bought Orange for 27.8bn ($55.1bn) in 2000.

The firm stressed that negotiations had not yet started, but said the two companies were complementary.

The news hit France Telecom shares, which fell 2.01% to 19.46 euros in morning trading in Paris - making it the main stock index's biggest loser.

The firm's finance director, Gervais Pellissier, said France Telecom would probably pay for any deal of the size of TeliaSonera in a combination of cash and stock.

He said the company would stick to its cash dividend policy - a source of concern for investors - but warned it might miss debt targets.

France Telecom's European expansion in the 1990s resulted in a huge debt burden.




SEE ALSO
French put va va voom into broadband
08 Aug 07 |  Technology
Share sale dents France Telecom
25 Jun 07 |  Business
France Telecom annual profits dip
01 Feb 07 |  Business
Mobile growth for France Telecom
14 Feb 06 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific