Alfa says ‘nyet’ to Telenor’s Vimpelcom proposal

28 Mar 2006

Russia’s Alfa Group has opposed a plan from its Norwegian-based investment partner Telenor to unite their Russian and Ukrainian mobile interests for cash. Telenor’s offer, aimed at bringing an end to the pair’s troubled business relationship, included selling the entire stock in Ukraine’s mobile market leader Kyivstar for USD5 billion in cash to Vimpelcom, Russia’s number two cellco. Telenor and Alfa hold stakes in both Kyivstar and Vimpelcom. Alexei Reznikovich, CEO of Alfa’s telecoms arm Altimo, claimed the proposal was not workable, adding that Alfa was not looking at acquiring Telenor’s stake nor was it ready to sell its stake. Reznikovich also said: ‘I see no reason why we cannot continue our co-ownership in Vimpelcom.’

Russia, Ukraine, Beeline (Russia), Kyivstar, Telenor Group, VEON (formerly VimpelCom)