Telia’s management is targeting a bid for Danish telecoms operator TDC, which would be the largest acquisition ever made by a Swedish listed company, Dagens Industri reported.

Citing unnamed sources, the newspaper said Danish incumbent TDC is considering making its own acquisition bid – for Swedish broadband and TV provider Com Hem – in an attempt to stave off a takeover.

TDC is Denmark’s largest telecoms company and provides quadplay services comprising mobile and fixed line telephony, broadband and TV. The company’s market capitalisation stands at $4.29 billion, around a quarter the size of Telia’s.

In order for the deal to go through, Telia would likely need to raise additional capital from issuing further shares, which in turn would impact the 37 per cent share of the company currently owned by the Swedish Government.

Last year, TDC sold its Swedish operation to Tele2 in a deal worth $352 million. However, in an attempt to resist an acquisition bid Dagens Industri reported the company may attempt to re-enter the market through the purchase of broadband provider Con Hem.