Belgacom and Telindus have reached a conditional agreement on a tie-up, the two companies said late on Friday, amid a bidding war that has pitted Belgium's telecoms giant against France Telecom.
"Belgacom and Telindus are pleased to announce that they have reached agreement on a partnership which will preserve Telindus as a separate company with its own brand, identity, culture and values within the Belgacom Group," the firms said in a statement."Subject to the right to revise its opinion in case of a higher offer or counter offer, the Board of Directors of Telindus recommends the Belgacom offer to its shareholders."
Telindus board members with shares or representing other shareholders will inform the market of their position on January 3 at the latest, it said.
"The conditional agreement will take effect if no higher offer is filed for Telindus at the latest on 4 January 2006."
Belgacom and France Telcom want Telindus for its expertise in networks systems, an area in which they want to expand to better serve their corporate clients.
Belgacom topped France Telcom's bid by 5 percent to 16.60 euros per share, valuing Telindus at nearly 600 million euros ($710.2 million). The statement said Belgacom maintained that offer.
Telindus Chariman Jan Steyaert said Belgacom had improved its bid through "additional commitments" and the creation of a foundation to make sure Belgacom honours those commitments.