LONDON (Thomson Financial) - France Telecom has approached banks seeking to arrange a 10 billion euro loan facility to finance an unspecified acquisition, Reuters reported, citing unnamed banking sources.

Reuters cited an unnamed banker, whose bank had been approached to participate in the facility as saying he believed the money would be used to finance a bid for Nordic telephone company TeliaSonera AB.

France Telecom declined to comment, Reuters said.

France Telecom earlier this year said it was interested in TeliaSonera but that no talks were underway.

Analysts were critical of the merger scheme, saying there was insufficient overlap to make sense of such a move, but France Telecom insisted a deal could add value. matt.gil@thomsonreuters.com mrg/ra

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