Few synergies exist for TeliaSonera, says Morgan Stanley

摘要

The potential synergies behind the merger of Telia and Sonera, the respective incumbents of Sweden and Finland, are limited, says investment bank Morgan Stanley, not least because cost per employee is 55 per cent above the European average and there is little opportunity to cut staff numbers. Limited benefits from the merger can be derived from reducing equipment and material costs as well as by cutting costs associated with R&D. Reducing headcount is a limited option as in the decade preceding the merger the number of employees at Telia Sweden fell by 70 per cent, and Sonera's employee numbers have come down by close to a third in the past two years. Staff costs, particularly in Sweden, are high though, at SKr552,719 (EUD 59,421) per employee, even though efficiency, using revenue per employee as a measure, is also high. The possibility for TeliaSonera to cut costs at the company's Baltic operations is also limited, as Eesti Telefon, TeliaSonera's main interest there, cut its headcount by 35 per cent in 2002. But even if total operating costs in the Baltics were to come down by 8 per cent, annual saving would amount only to SKr107 million.