KPN-Belgacom: The on-again, off-again merger

Rumours are once again rife that Belgium and Holland's largest telcos are about to agree merger terms, despite weeks of strained negotiations.

Despite synergies, not least of which is the companies' neighbour status, the deal has stalled on KPN's demands for a 50-50 grouping, according to reports.

The Dutch operator has been the more ambitious in recent years, but its expansion has seen it amass billions of euros in debt - mainly through paying for expensive 3G mobile spectrum licences in Europe - that have sent its share price plummeting to an historic low.

Belgacom on the other hand, which counts US regional Baby Bell SBC as one of its shareholders, isn't burdened by debt, and some financial analysts argue a marriage would require a 60-40 split in equity in its favour to succeed.

There is also no obvious choice as to who would be the chief executive of any new entity or where it would be headquartered.