TALLINN - TeliaSonera's offer to buy out minority holders in Eesti Telekom fell way short of expectations, though the Scandinavian company said it would stick to its long-term goal of acquiring a controlling majority in the telecommunication company.
TeliaSonera, which was was offering cash for shares, managed to cull together only 352,857 shares 's or less than 1 percent of outstanding stock 's from its mandatory buy-out offer. It now owns 50.26 percent of Eesti Telekom, the company announced on Feb. 25.
TeliaSonera had offered to pay 109.84 kroons (7.02 euros) per share, while the market price for the stock was 125.49 kroons as of Jan. 25 close on Tallinn Stock Exchange.
The government, which owns more than 27 percent of the Telekom shares, announced earlier this month that it would not accept the offer. Last year TeliaSonera offered to buy the state's holding at 111.3 kroons per share, but the government refused, saying 133.5 kroons was the fair price.
Kjell Lindstroem told the Baltic News Service that TeliaSonera's aim was to consolidate its holding in the company. Even if the Scandinavian company fails to increase its stake, acquiring full ownership will remain the concern's long-term goal, Lindstroem said, adding that TeliaSonera had not planned any further steps to increase its holding.