Telenor seen as better prepared for M&A activity after state gains approval to reduce its stake
Telenor is seen as better prepared for M&A activity after the Norwegian parliament approved a possible reduction of the state's stake in the Norwegian telco, according to Finansavisen.
The Norwegian business daily cited a Carnegie analyst who said that the government is not likely in a hurry to reduce the stake but being able to sell shares gives Telenor the possibility to use its own shares in M&A situations.
When asked where these opportunities might occur, he said that the Indian market is very much in need of consolidation and also pointed to the recent rumours regarding possible talks between Telenor and Indian Tata Teleservices.
The paper reported that Telenor's Asian director, Sigve Brekke, said late last year that the company has long-term plans in India.
Meanwhile, an ABG Sundal Collier analyst did not think a stake reduction will occur in the immediate future either selling directly or via a merger takes time to consider and prepare. He was also sceptical to Telenor participating in a larger deal in India.
Finansavisen