Schroder Salomon Smith Barney has advised KPNQwest, the Dutch-US data network provider, on its acquisition of part of the businesses of Global TeleSystems (GTS) in a deal that bankers say could kick-start consolidation in the telecoms sector.

A banker close to the deal said: &quotWe see it as a landmark catalyst deal which shows that we are hitting a bottom in terms of asset value.&quot