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Former economy minister proposes to consider "Lattelecom" merger(LETA Latvian News Agency Via Acquire Media NewsEdge) RIGA, Nov 6 (LETA) - In order to improve the company's competitive capacity, it would be useful to consider a merger between the telecommunications company "Lattelecom" and one of the mobile communications operators, former Economy Minister Vjaceslavs Dombrovskis said in an interview with the LNT show "900 sekundes" this morning. He stressed that after evaluating "Lattelecom" competitive capacity and further development, it would be pointless to sell the company. In order to improve the company's competitiveness, it would be better to consolidate it with some other mobile communications operator. All of this will depend on the new economy minister, Dana Reizniece-Ozola (Greens/Farmers), the minister added. As reported, "Lattelecom" board and council proposed at the end of last summer that the company could merge with "Latvijas Mobilais Telefons" (LMT) in order to prevent the two companies' value from decreasing and achieve closer synergy between the companies' services and management structures. "Lattelecom" was established in 1992, the company was originally named "Lattelekom". In 1994, Danish company, which at that time belonged to Finland's "Sonera", Britain's "CableWireless" and the state of Latvia, acquired a 49 percent stake in "Lattelecom". In 1998, "Sonera" bought "CableWireless", and in 2002 it merged with Swedish company "Telia", creating "TeliaSonera" - currently the owner of 49 percent of "Lattelecom" shares. LMT was established in 1992 as the first mobile phone operator in Latvia. "TeliaSonera" owns 49 percent of the company's shares", "Lattelecom" - 23 percent, Latvian State Radio and Television Center - 23 percent, and the state of Latvia - 5 percent. |