Lawmakers Ask Swiss Government To Explain Swisscom Disclosure

BERN -(Dow Jones)- Two parliamentary commissions Wednesday asked the Swiss government for a response to criticisms of its handling of Swisscom AG's privatization plan and terms attached to it.

Standing commissions in both the upper and lower house of the Swiss parliament said they want an explanation by January.

The Swiss government last month decided to sell its majority stake in Swisscom, raising hopes the company would embark on a buying spree in Europe and proceed quickly with bigger takeovers. At that time, Swisscom was already in takeover talks with Irish incumbent Eircom Group Ltd.

But only later, the day after its sales plan was made public, did the government reveal it would block any large foreign buys by Swisscom until it has sold off its 66% stake in the company.

As a result, Swisscom had to end talks with Eircom. Swisscom's company's management criticized the government for how it informed them about the takeover policy. The management said the U-turn came as a total surprise and undermined trust in the company's management.

The government defended its decision to block foreign buys, saying it was concerned Swisscom's expansion strategy could fail.

The lower-house standing commission is also discussing whether to start a formal investigation into the government's Swisscom policy. It is expected to decide on this issue Dec. 15.

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

-By Goran Mijuk, Dow Jones Newswires; +41 43 443 80 47; goran.mijuk@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 7th December 2005