Sweden yesterday announced the eagerly awaited listing of up to 49 per cent of state-owned telecoms operator Telia in a flotation that, when complete, will swell state coffers by more than $20 billion.

In what will be Sweden's largest privatisation and largest initial public offering, the state will cut its holding in Telia to 51 per cent, helping the company arm itself to compete in a rapidly consolidating market. Telia is in the process of selling its 14 per cent stake in Eircom.

The first tranche of the offer would come to market by "midsummer" (the end of June), Industry Minister Mr Bjorn Rosengren told a news conference, although not all of the 49 per cent stake will be floated this year. Mr Rosengren said the state would sell 2530 per cent of the company in 2000, and with recent market estimates valuing Telia at up to $46 billion, the initial tranche could be worth more than $13 billion.