TeliaSonera Offers to Buy Latvian Operators

TeliaSonera says that it has offered US$1.05 billion to buy the state owned stakes in Latvian fixed-line operator Lattelecom and mobile phone company LMT. Currently, TeliaSonera owns 49% of Lattelecom, with the rest owned by the government. TeliaSonera then has direct ownership of 49 percent of LMT, Lattelecom has 23 percent, and the state owns 28 percent. TeliaSonera effective ownership of LMT is 60.4%.

Responding to the offer though, Latvian Prime Minister said TeliaSonera should sell its 49 percent stake in Lattelecom before being allowed to take full ownership of LMT - to maintain competition in the market.

"We have submitted a written indicative offer of 500 million Latvian lats, plus additional money for investments, and now we want to wait and listen to what the government will say," the CEO of TeliaSonera's mobile division, Kenneth Karlberg, told reporters at a joint government and TeliaSonera news conference.

TeliaSonera is currently supposed to be in the process of selling its 49% stake in Lattelecom to private equity group, Blackstone, although an earlier plan for a management buyout part funded by Blackstone has expired.

Posted to the site on 7th February 2008