Greece
Panafon and France Telecom announced recently they are holding discussions regarding a possible offering or an issue of an exchangeable bond by France Telecom of all or part of its remaining 20-percent equity stake in Panafon. France Telecom sold a 15-percent stake in November 1998 at an initial public offering of the company on the Athens and London stock exchanges.
Italy
Olivetti plans to split Telecom Italia, which it won in a takeover bid in May, into two operating companies under its Tecnost acquisition arm. Telecom Italia Mobile (TIM), Telecom Italia’s mobile phone company, will transfer to Tecnost. TIM is Europe’s largest mobile phone network with 17 million users. The deal will help Tecnost pay off debts incurred through the Telecom Italia takeover. Olivetti owns 70 percent of Tecnost, which holds a 52-percent stake of Telecom Italia. Telecom Italia owns about 60 percent of the voting stock in TIM.
Poland
Vodafone AirTouch said its wholly owned subsidiary AirTouch Communications is acquiring a 5.5-percent stake in Polkomtel from Stalexport for US$145 million. Vodafone AirTouch currently owns 19.25 percent of Polkomtel, which operates the Plus GSM network in Poland.
Russia
Leap Wireless International announced it has ceased funding loans to Metrosvyaz, a company in which Leap holds a 35-percent interest, which is attempting to establish joint ventures in Russia to operate wireless telecom companies. Leap said it stopped funding the loans because Metrosvyaz had not satisfied certain conditions to funding and is now in default under its loan agreement.
Turkey
Sonera is reportedly interested in buying a 20-percent stake in Turk Telecom that is scheduled to be offered by the Turkish government. Sonera is also interested in buying the Turkish company Cukorova, a company associated with Turk Telecom. According to foreign investors, Turkcell weathered the recent earthquakes well, but the company could be subject to a special tax to help pay for rebuilding from earthquake damage in certain areas of Turkey.
