Telenor ASA has agreed to buy Bulgaria's Globul from current owner OTE for EUR 717 M on a cash and debt free basis, the Norwegian telecoms firm said in a statement on Friday.

Globul is Bulgaria's second-biggest mobile telephony operator.

"The purchase price will be adjusted depending on Globul's net debt and changes in working capital on the day the transaction is completed," OTE said in a bourse filing.

Earlier in the week it emerged that two investors are bidding to buy Bulgarian mobile operator Cosmo Mobile (Globul).

It was made clear on Thursday that one of the bidders is Turk Telekom. The Turkish company made the announcement that it had placed binding bids to acquire Cosmo Mobile and electronic appliance retailer Germanos Telecom Bulgaria in a statement to Istanbul stock exchange.

The Bulgarian Capital Daily reported that the other bidder is likely one of the following: Telenor, Turkcell or Deutsche Telekom.

Globul accounts for about 7% of OTE's sales and about 9% of earnings before interest, tax, depreciation and amortization (EBITDA).

In Bulgaria, Globul competes with Telekom Austria Mobiltel and Vivacom, recently acquired by Bulgarian banker Tsvetan Vasilev, and Russia's VTB Bank.

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