The Scandinavian telecoms group formed from the merger of Telia and Telenor is expected to confirm shortly its decision to sell its 14 per cent stake in Eircom. This is despite reported comments from the incoming chairman of the merged group, which appeared to indicate that it was considering selling its 49.5 per cent stake in Esat Digifone.

Telenor has a 49.5 per cent stake in Digifone while Telia has a 14 per cent stake in Eircom, the parent company of Esat's only competitor in the Irish mobile phone market, Eircell.

Irish and European competition regulations will not allow the merged group to have a stake in competing mobile operations.

In an interview with Reuters, in which he was asked specifically about asset disposals once the merger is complete, Telia chief executive and incoming Telia/ Tele nor chairman, Mr Jan-Ake Kark, had said that as well as selling the merged group's cable television operations, there were other assets which could be sold, such as Telia's Norwegian operations and Telenor's stake in Esat Digifone.

However, it is understood he was merely acknowledging the fact that either the Esat Digifone or Eircom stakes would have to be sold. It is now certain that Telia will shortly confirm that it will dispose of its stake in Eircom and that the merged group is committed to holding on to its shares in Esat Digifone.

Telia may now sell just under 9 per cent of its 14 per cent stake to its partner in the Eircom strategic alliance, the Dutch telecoms group KPN.