San Diego-based MicroHoldings is trying to buy the German telecommunications company Merkur Telekom to expand its reach into the European market. MicroHoldings has signed a nonbinding letter of intent to buy the provider of prepaid and international calling services, but hasn’t stated its price publicly. MicroHoldings says that, according to Merkur’s unaudited financial statements, the company has produced more than 2 million euros ($2.67 million) in revenue for 2006, posting a profit of about 200,000 euros ($267,000).

MicroHoldings’ Web site describes it as a holding company that acquires, supports, develops and benefits from “international companies that have solid business plans and a great potential for profitability.” MicroHoldings also owns the subsidiary XChangeTel, a provider of international calling services based in San Diego.