Former Belgacom head Bessel Kok had told Belgian business daily De Tijd last month that Belgacom and KPN should resume merger talks after they stalled a decade ago. Current CEO Didier Bellens was perhaps too cautious, he said.

Asked his view on this, Bellens said: "Maybe such a deal makes sense, yes. It is not obvious that there would be many synergy advantages.

"The crucial question is whether we could share the development costs of new products over two markets," he said in the weekend's edition of De Tijd.

Bellens said Belgacom was in an enviable position with low debt and a strong position in its home market in fixed and mobile telephony, Internet and television.

Bellens said Belgacom continued to study possible acquisitions, although was aware there was limited growth potential in the European market.

Copyright Reuters, 2010