Swiss government sets new acquisition rules for Swisscom

The Swiss government said yesterday that incumbent telco Swisscom will be allowed to take on a maximum of CHF5 billion (EUR3.221 billion) in debt through acquisitions and investments but will be banned from buying foreign companies which have universal service obligations. The government, which owns a 62% stake in the operator, added that it expects Swisscom to launch a television service and become a competitive triple-play provider. Last month the state said that it plans to reduce its holding, although a change in legislation is required for it to take its stake below 50%-plus-one-share, a process that is likely to take several years.