Telenor forces BT to buy Viag stake

BT will buy a 10 per cent stake in German mobile network Viag Interkom from Norwegian telco Telenor in a deal worth more than NKr20bn (£1.52bn).

The deal will include NKr13bn (£991m) for the shares, and NKr7bn (£534m) to repay loans made by Telenor to Viag. BT will now own all the equity in Viag, adding to its 45 per cent stake and the 45 per cent of shares it is due to buy from German utility E.ON. BT's deal with E.ON, announced in August and due to be completed in the first half of 2001, included an option that allows Telenor to oblige BT to buy its stake - something Telenor has now decided to exercise. The deal adds to worries about BT's mounting debt. Telenor has a similar agreement to sell BT its 49.5 per cent stake in Irish mobile network Esat Digifone, for a further £554m.