Lattelecom is talking to the owners of Bite (formally, TDC of Denmark, in reality, a private equity consortium that owns around 88 % of TDC) about a deal that would see Lattelecom buying the whole Bite Group (Latvia and Lithuania). The purpose -- to give Lattelecom the much needed mobile component once it loses its half-mother TeliaSonera and its snobbish cousin Latvian Mobile Telephone (LMT), like the robot child in Steven Spielberg's Artificial Intelligence, will get a real 100 % mother.
With Bite, Lattelecom will have a strong pan-Baltic mobile presence and room, in Latvia, to experiment with wireless internet (both fixed and mobile) using HSDPA that Bite will be launching soon. Its Vodafone roaming deals are attractive for business users. Both companies will be able to merge their internet/mobile TV offerings (Bite says it will have 22 channels of TV over HSDPA).
Certainly, mobile will be an uphill fight in Latvia for Bite, but with cross-selling of Bite and Lattelecom products (maybe a hybrid wireline/less broadband concept) there should be some synergies.
As for LMT, it may find that it has a tough love mother in TeliaSonera that will push it to get off its Scrooge McDuck bags of past and recent earnings and do some strategic future planning and genuine fast movement on the market before those huge profits become the lunch of faster competitors and disruptive technologies.
By the way, this information isn't from Lattelecom nor the half-mother. It has been earlier mentioned in passing as a pipedream on Dzirnavu Street, but purely hypothetical. But do make some calls, Elisabete :) :).