RIGA, Nov. 7 (Xinhua) -- The Latvian government on Tuesday rejected a proposal to merge the Baltic country's two leading telecommunication companies, Latvian Economics Minister Arvils Aseradens said.
The Latvian government owns shares in both companies, Latvijas Mobilais Telefons (LMT) and Lattelecom landline operator, but so does Scandinavia's Telia Company, which recently warned that it might sell off its stake in LMT and Lattelecom if Latvia rejected the merger plan.
The decision to reject the telecommunication companies' merger was taken at a closed cabinet sitting after the National Alliance, the right-wing partner in Latvia's tripartite center-right coalition, objected to merging the partly state-owned telecom companies.
Roberts Zile, a leading member of the National Alliance, said on Monday he had not heard any sound arguments to support the merger of LMT and Lattelecom.
Aseradens indicated that the government on Tuesday took a political decision contrary to the Economics Ministry's advice to start talks with Telia Company, which offered Latvia a 51 percent stake in the joint company that would be established by merging LMT and Lattelecom.
He added Latvia would continue talks with Telia Company on further cooperation to ensure the telecommunication companies' further operations.
