Tele Danmark mulling stake in local operator Szeptel

Danish telecom operator Tele Danmark is considering buying into domestic fixed-line phone operator Szeptel to bolster its presence in eastern Europe, Ole Jakob Thorsen, a deputy head of Tele Danmark's Internet unit, told a press conference after inking a cooperation deal with the Polish company. The agreement foresees creating international points of connection between the Danish operator's and the Polish company's networks, expanding its phone infrastructure and a joint development of Szeptel's national sales network. "In exchange for the services, Tele Danmark Internet A/S will gain an option to buy Szeptel shares, which will be agreed in a separate deal," the Polish company said in a statement. Szeptel, with 10.1 million shares outstanding, saw its stock reach zł.33 at the end of trading on Thursday, putting the company's value at roughly $78 million. "Possibly, Tele Danmark could become our majority owner, and for the time being we have agreed on a cooperation deal," said Szeptel head Michal Skolimowski. Tele Danmark, which holds stakes in telecom companies throughout the central European region, has been present in Poland since 1996 as a large minority owner of the country's second largest mobile phone group, Polkomtel. (Reuters)