British Telecom and Telenor, Norway's state-owned telecom, said yesterday they had paid €308 million to increase their stakes in Telenordia to become 50-50 owners of Sweden's third-largest fixed-line operator.

Under the all-cash deal, BT and Telenor, which both have a stake in Esat Digifone, will have each purchased half of a one-third shareholding held by Tele Danmark, Denmark's largest telecom, which is in the throes of restructuring.

The acquisition of Telenordia further strengthens BT and Telenor's relationships and their foothold in Sweden, representing 40 per cent of the total Nordic market.

"The Swedish mobile market, with its 8.9 million inhabitants and its advanced users, is a very attractive market," said Mr Erik Heilborn, Telenordia's managing director.