DUBLIN, Ireland-Newtel AB, the newly formed company resulting from the merger of Telia AB of Sweden and Telenor AS of Norway, has launched a hostile bid for Ireland’s Esat Telecom, offering $1.59 billion in cash.
Telenor already owns 49.5 percent of Esat’s Global System for Mobile communications operator Esat Digifone.
“The Irish market is an important part of our international strategy, and we wish to expand our presence in Ireland,” said Tormod Hermansen, chief executive officer of Newtel.
“We tried to obtain a recommendation for our offer. As this was not forthcoming, we decided to put our offer directly to shareholders.”
Esat urged shareholders to take no action in response to the hostile bid and said a further announcement would be made by Esat’s board, according to a Reuters report.
