European telecoms giant France Telecom – owner of Orange – is close to finalising a €30 billion (US$47.5 billion) bid for Nordic operator TeliaSonera, according to French newspaper reports, which say a deal could be made within a matter of weeks. The acquisition would see France Telecom overtake Deutsche Telekom to become Europe’s third largest telecoms group (after Telefonica and Vodafone) with a market cap of around US$125 billion.

TeliaSonera is the incumbent operator in both Sweden and Finland and has numerous mobile businesses in the Nordic and Baltic regions, including Swedish market-leader Telia (4.8 million subscribers), and Finland’s Sonera (2.4 million subscribers). The business would give France Telecom a further 115 million customers in total if a deal is made. Analysts suggest a deal makes sense, as there is very little geographical overlap in the two companies’ businesses.

Back in France, France Telecom rival Vivendi – part owner of mobile operator SFR – announced that it has been given permission to increase its stake in French fixed-line operator Neuf Cegetel to 68.13%, triggering plans for Vivendi/SFR to take full ownership of the business. The deal is seen as a way for the company to compete more effectively with France Telecom/Orange by offering combined fixed and mobile services.