TeliaSonera reverses provision of approximately SEK 500 million
- 2006-11-23 15:30 UTC
TeliaSonera AB has settled a dispute concerning a long-term lease contract (Westferry Road) in London, originally intended as a co-location site for the international carrier business.
In 2002, in connection with the large restructuring of the international carrier business, a provision was recorded to cover the projected future costs of the lease. The settlement results in the lease being rescinded (i.e. terminated) and hence the related provision can be reversed. The reversal of this provision will be reported as a non-recurring item and is estimated to affect TeliaSonera’s operating income positively by approximately SEK 500 million in the fourth quarter 2006. The reversal of this provision will be taxable.