Report: Telia considering bid for TDC

James Pearce
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Swedish operator is looking to buy Danish incumbent less than 18 months after its plans for a Telenor tie-up in the country collapsed

Telia is eyeing up a takeover bid for Danish operator TDC, according to reports from Sweden.

Dagens Industri, a business newspaper based in Stockholm, claims TDC, which is valued at around $4.3 billion by the market, is a target for the Swedish firm after it cancelled its tie of its own Danish unit and Telenor in 2015 following pressure from the EU.

If Telia bid, it would be the biggest acquisition ever by a listed Swedish company, according to DI, although the Swedish firm would likely have to issue share rights to fund the takeover.

TDC is itself considering a potential acquisition of Swedish cable TV provider Com Hem, according to the report, in order to stave off Telia’s advances.

Telia, then called TeliaSonera, and Telenor withdrew plans to merge their business units in Denmark in September 2015 after failing to agree concessions with the European Commission over the proposal.

Competition commissioner Margrethe Vestager had expressed concerns that the deal would reduce the number of operators in the market from four to three – the others being the aforementioned TDC and CK Hutchison’s Three.

It remains to be seen if a takeover bid for TDC, the incumbent, would be met with the same regulator barriers should Telia go ahead. The report comes just months after Telia Company restructured its senior management team.