White & Case Advises Sonera Corporation in the Largest Ever Merger in the Nordic Region

Helsinki, March 26, 2002 ... In the largest ever merger in the Nordic region, White & Case is representing Sonera Corporation and its major shareholder, the State of Finland, in connection with the merger between Sonera and Telia AB of Sweden. The combined company will have a market capitalization of approximately EUR18bn.

The merger of Sonera and Telia will create the leading telecommunications group in the Nordic and Baltic region. The merger will be effected through a public exchange offer by Telia for all the shares of Sonera. Telia, which is 70% owned by the Swedish state, has offered 1.5144 of its shares for each Sonera share, representing a 15.8% premium. The Finnish and Swedish states have agreed to support the merger and have signed a shareholders agreement. The combined company will be listed in the United States and on both the Stockholm and Helsinki Stock Exchanges.

"This is an important step in the consolidation of the European telecommunications industry," commented lead partner Petri Haussila. "The Nordic region needed a significant telecoms company in order to enable the region to operate effectively on the European market and ensure its place as a substantial international presence. The strength of our relationship with Sonera as a long-standing client of the firm, coupled with our local presence in Finland and in Sweden and our international experience in major cross-border transactions, was vital in facilitating this transaction."

A merger of this size signals a new stage in the consolidation of the telecommunications industry following the recent spate of restructurings across the sector. It confirms the Nordic Region’s role in the telecommunications market and ensures that the region has an international presence in any further market consolidation.

The White & Case lawyers who advised Sonera Corporation and the Finnish State on this transaction included: Helsinki Partner Petri Haussila, who led the team; Helsinki Associates Marko Wuorinen, Laura Huomo and Tomi Asanti; Stockholm Associate Sven Krogius; and Brussels Partner Mark Powell, who advised on EU regulatory matters.