HELSINKI, Finland—The Danish government has requested a meeting with SBC Communications to discuss the U.S. telecom company’s immediate future plans for its 42-percent equity in the Danish telecom company TDC.
The invitation to talks has emerged following a confirmation by TDC’s board that SBC intends to divest its European holding to refocus its business on the United States, Canada and South America. Market analysts in Scandinavia estimate that SBC could earn US$10 billion on the sale of its shares in TDC.
SBC’s retrenchment from Europe has provoked fresh stock market rumors of a possible merger between TDC and Telia, the Swedish state-owned mobile and fixed telecom corporation. Deutsche Telecom has re-entered the picture as another possible buyer for SBC’s equity stake.
The spotlight also focuses on SBC’s holding in ADSB Telecommunications (ADSB), the Belgian telecom company that owns a 50-percent stake in Belgacom.
ADSB comprises SBC, TDC and Singapore Telecom. The other 50-percent stake in Belgacom is owned by the Belgian state. SBC’s direct share in ADSB is 35 percent, TDCs is 33 percent, and Singapore Telecom has 27 percent.
TDC and SBC bought into Belgacom in March 1996, acquiring shares for a total cost of US$8 billion. Of this amount, TDC’s share amounted to US$470 million.
SBC completed an analysis of its long-term investment in TDC in 2001, sensing a divestment could be in the pipeline. The leading contenders at this time, according to an appraisal by Copenhagen-based Det Danske Bank (DDB), named France T
