The Norwegian telecoms group Telenor has until December 7th to decide whether to sell its 49.5 per cent stake in Esat Digifone to British Telecom for $1.24 billion (€1.47 billion) or to swap the Digifone stake for a 33 per cent stake in BT's wholly-owned subsidiary Esat Telecom.

If Telenor does not exercise either option by that date, it will be required to sell the Digifone stake to BT for $1.24 billion.

If Telenor opts to sell its Digifone stake to BT, it will come at an unwelcome time for the UK group which has given a pledge to reduce its debts by $10 billion. If, however, Telenor opts to swap its Digifone stake for 33 per cent of Esat Telecom it would leave the way open for Telenor to possibly increase its stake in Esat Telecom to 49.5 per cent.