Swiss telecoms firm, Swisscom revealed this week that it is hoping to break a deadlock with the country's government over its foreign acquisition hopes.
Speaking at a press conference in Zurich on Monday, chief executive Jens Alder pledged that the firm would invest at least one billion francs per year in the domestic market if it is allowed to go ahead with its overseas purchase plans.
The firm had initially sought to take on 10 billion francs in debt in order to finance a foreign acquisition. However, the Swiss government (which holds a 66% stake in Swisscom) instructed its board member to vote down any such plans, forcing Swisscom to jettison its ambitious project.
The Swiss authorities also stated that they wanted to make a full exit from the company, a move which has dismayed chairman Markus Rauh, who observed that:
"We have paid out over 10 billion francs to the state over the past years in dividends and buybacks, and now - overnight - it pegs us as a hopeless case that should be sold as soon as possible to the highest bidder."
The Swiss government is expected in the next two weeks to confirm a course of action with regard to Swisscom. However, unless it is prepared to change the law, it is legally obliged to retain at least a 50% +1 share in the firm.
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