By Tony Hallett, 8 July 2004 16:50
NEWS Orange is selling its wholly owned Danish subsidiary to TeliaSonera in a deal worth €600m.
The cash transaction will boost the coffers of France Telecom, Orange's parent.
Such a deal isn't a complete surprise. Orange has already exited Sweden and Denmark is among the world's most competitive mobile markets
While Orange Denmark generated €258m in revenues last year it places only third behind TDC and Sonofon and faces stiff downward pressure on prices, especially from facilities-free mobile virtual network operators (MVNOs).
Analyst house Ovum in a research note today questioned the wisdom of the deal to TeliaSonera and said to expect further consolidation in the market.
Orange is expected to focus more intensely on its core businesses in countries such as France and the UK.
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