June 19 (Bloomberg) -- Telenor ASA, the Nordic region's biggest phone company, said it is ``actively exploring'' merger and acquisition opportunities.

The company is ``selectively'' looking at Africa and plans expansion within existing ``regional clusters,'' Telenor said today at its capital markets day at its headquarters in Fornebu, Norway.

Telenor has relied on eastern Europe and Asia for growth as the Nordic mobile market reaches saturation and users of traditional telephones disconnect their lines. The company, which owns units in Ukraine, Russia, Hungary, Serbia, Montenegro, Pakistan, Malaysia, Bangladesh and Thailand, also said it's seeking ``complementary businesses'' in existing markets.

``Telenor has the advantage that it is currently in various emerging markets and expanding around their current operations would allow them to take advantage of regional synergies,'' analysts at ING wrote in a note.

Telenor rose as much as 1.75 kroner, or 1.7 percent, to 106.50 kroner and traded at 104.75 kronor as of 10 a.m. in Oslo. Before today, the shares had declined 19 percent this year, versus a 24 percent drop in the Bloomberg Europe Telecommunication Services Index.

``We do believe there will be consolidation efforts,'' Chief Executive Officer Jon Baksaas said in a presentation. ``In five years' time there will be somewhat fewer operators with a global footprint,'' he said. The company may also consider acquiring minority stakes, Baksaas said, declining to comment on specific targets.

To contact the reporter on this story: Maria Fredriksson in Stockholm at mfredriksson@bloomberg.netJuho Erkheikki in Helsinki at jerkheikki@bloomberg.net.

Last Updated: June 19, 2008 04:00 EDT