News Leaks Put Pressure On TDC To Make Statement

COPENHAGEN -(Dow Jones)- Danish telecommunications company TDC A/S (TLD) could be compelled by regulators to make a statement on efforts to take over the company, following news reports that it is cooperating with bidders. Danish Bourse Senior Vice President Erik Bruun Hansen said a company can be compelled by the stock exchange regulator to make an announcement when takeover talks have advanced to the stage of due diligence and the information is leaked to the public. He didn't refer to TDC specifically.

If no information is leaked, a company is under no obligation to notify the stock exchange of tentative takeover talks, even when they have proceeded to the step of opening their books.

Bidders don't have to make any announcements until they make a final decision to make a bid

TDC was not immediately available for comment.

The Wall Street Journal and Danish business Daily Borsen Thursday reported that TDC's board had decided to allow private equity groups to inspect the company's accounts.

The reports followed nearly two months of market speculation about a takeover bid with no official comments coming from either TDC or the potential buyers.

The talk has sent TDC shares sharply higher and led some to complain about the lack of information and the possibly that investors, particularly smaller ones, stand to lose millions if an official offer doesn't come through.

At 1401 GMT, TDC was up 10 kroner ($1=DKK6.1468), or 2.9%, at 350.50. The share traded at between DKK260 and DKK275 during the summer.

The Journal said the approval for due diligence to start comes after two groups of private equity firms, which include many of the world's largest investment partnerships, submitted proposals to buy all Denmark's dominant fixed-line and wireless operator for about $12 billion.

Company Web site: http://www.tdc.com

By Frances Schwartzkopff, Dow Jones Newswires; +45 33 11 15 24; frances.schwartzkopff@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 6th October 2005