Swisscom has launched "intense discussions" with the Swiss government, its controlling shareholder, which last week blocked efforts by Swisscom to buy Eircom.
"The Swisscom Board of Directors has held intense discussions on the instructions issued by the representative of the Swiss Confederation, has analysed the situation in detail, and has instigated talks with representatives from the federal government," the company said today in a statement.
A shock government decision to block Swisscom's expansion plans last week sent shares in Eircom crashing. Swisscom was in advanced talks with Eircom about a €2.6 billion takeover.
Swisscom has also looked into a possible $12 billion acquisition of Denmark's TDC. A spokeswoman for Swisscom declined to elaborate on the statement.
Swisscom said it would inform the public of any actions it might take next week at the earliest. Talks with the Swiss government are likely to be seen as an effort by the former state monopoly, in which government still holds a 66 per cent stake, to clarify strategic limitations placed on the company by its largest shareholder.
The Swiss government has said it will not waver in its decision to block attempts by Swisscom to pursue "major" acquisitions and expand abroad as long as it was the controlling shareholder.
The talks may also be an attempt by Swisscom chief executive Jens Alder to rebuild his position following speculation that he would be forced to resign after the Swiss government's surprise announcement that it would block expansion plans, the cornerstone to Alder's strategy.