EU – Baltic States, Latvia, Legislation, Markets and Companies, Telecomunications

Management of the two Latvian companies' shares was discussed during the closed part of the government's meeting yesterday.

The Economy Ministry had prepared a detailed plan on Lattelecom and LMT, which offered an analysis of the two companies' merger or keeping them as separate entities, said Reizniece-Ozola. The government, however, decided that the Latvian Privatization Agency would have to contact TeliaSonera and ask it to present its offer regarding the further development of Lattelecom and LMT.

TeliaSonera has said that it wishes to acquire controlling interest in both companies, but the government decided yesterday that TeliaSonera had to formalize its offer, said Reizniece-Ozola.

There is no set time by which TeliaSonera has to present its offer, said the minister. Once the offer is received, the Economy Ministry will prepare a new report and submit it to the government, she added.

She also made it clear that the government's decision did not mean that changes were to take place at Lattelecom and LMT in the near future. "There have been no decisions for the government or the Economy Ministry to approve concerning a merger of the two companies or selling their shares," stressed the minister.

Regardless of what TeliaSonera offers, the Economy Ministry will continue to insist that the state has to keep controlling interest in both companies. Prime Minister Laimdota Straujuma (Unity) also supports this position.

TeliaSonera Enterprise Strategy and Business Development Director Kennet Radne told LETA previously that TeliaSonera wished to acquire controlling interest in Lattelecom and LMT.

According to Radne, Lattelecom needs to be merged with LMT, which would be in interests of both TeliaSonera and the Latvian market and telecommunications users. Clients will be able to receive new services, while the combined investments will be advantageous for the entire information and communication technologies market.

Radne also said that it would be too soon to comment on the merger talks, noting that TeliaSonera wanted to acquire controlling interest in the merged company.