The Scandinavian telecommunications group TeliaSonera said that it hasn't changed its mind on acquiring a bigger holding in Eesti Telekom but that it would better wait a bit until the Estonian government and the company begin to see eye-to-eye on a possible deal. Kjell Lindstrom, head of TeliaSonera's communications in Norway, Denmark and Baltic, said that the company's offer six months ago had failed due to differences of opinion on the value of the 27 percent Eesti Telekom stake. TeliaSonera currently holds 49.9 percent in the company and wants to increase that to 85 percent.
Lattelekom announced that it planned to establish a subsidiary that would handle telecommunication network maintenance and construction as well as provide call exchange services. CEO Nils Melngailis said that the company could begin as soon as 2005 and would eventually offer the services throughout the Baltics and Scandinavia. He said the provision of call exchange services is a specific business and a separate subsidiary is needed to carry out this business efficiently. "World practice shows a company is operating most efficiently when it is focussing on one sphere," said Melngailis.
Alta Capital, an Estonian investment firm, has been boosting its holding in Lauma, the textile and underwear producer, by buying out small shareholders. Company executive director Edgars Stelmahers said that Alta has increased its stake by 7.6 percent to 84 percent and is still buying up shares. In May Alta acquired 76.4 percent in Lauma from company managers.
Linas, the Baltic's largest manufacturer of linen textile, said it intended to shift its manufacturing operations and real estate business to separate subsidiaries. According to Lilijana Puriene, Linas' CFO, Linas will transfer its core activities to Lino Gamybine Grupe and Lino Investicinis Fondas in exchange for shares in these companies. "If businesses are transferred, Linas would mostly focus on accounting, consulting and other services," Puriene said. "We do not think that such a reorganization will have any major impact on our operations. However, it will ensure more effective management."
