World VoIP NewsFrance Telecom and TDC cancel Swiss merger plansFrance Telecom and TDC cancel Swiss merger plans

France Telecom and TDC cancel Swiss merger plans

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France Telecom and Denmark's TDC have announced that they are calling off the proposed merger of their Swiss networks. The merger had already been blocked by the Swiss Competition Commission (ComCo), and the two companies were considering their options.
­The merger was originally announced last November.

In a brief statement, the two companies announced that the appeal filed with the Federal Administrative Court has been withdrawn and the merge is cancelled.

With approximately 3.4 million mobile and 1.1 million fixed and broadband customers, the combined entity would have accounted for around 38% of the mobile telephony market and 13% of the fixed broadband connections. For 2008, the combined entity would have generated total pro-forma revenues of EUR 2 billion and EBITDA of EUR 534 million.

Had the merger been approved, France Telecom would pay at closing a net amount of EUR 1.5 billion to TDC and, as a result of a series of steps, become a 75% shareholder in the combined entity, and TDC will hold the remaining 25%.

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