Tele Danmark Splits Into Six Separate Companies

The largest telecommunications operator in Denmark, Tele Danmark A/S, has decided to split its activities into six companies.

As of Oct.1 , Tele Danmark's activities in the areas of fixed-line and cellular telephony, Internet, cable TV, and the operator's publishing company, which primarily produces phone books, will be placed under six independent companies.

At the same time Tele Danmark abandons the organizational division between domestic and overseas business. As a consequence, the responsibility for Tele Danmark's engagement in fixed-line, cellular and Internet companies in Northern Europe will be placed in the respective companies.

In the first six months of 2000, 47.7 percent of Tele Danmark's revenue was generated outside of Denmark. In the next few months the Danish telecommunications company will develop new brands for the six companies.

Apart from establishing the new sales companies, Tele Danmark will place the billing functions and other administrative jobs in a separate services company.

The split-up was made primarily to increase the total value of Tele Danmark.

According to the company's estimates, the value of Tele Danmark will double if the new companies are valued according to current market pricing.

"It is very likely that the new companies will be introduced on the stock market or used in connection with coming acquisitions", said Henning Dyremose, CEO of Tele Danmark.

Formerly state owned, Tele Danmark was fully privatized when the Danish government in October 1997 sold the majority of the shares to U.S.-based Ameritech Corp. - which later merged with SBC Communications Inc.

Last year Tele Danmark reported revenue of $US5.1 billion.

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