Bitel’s dividends to MTS illegal, says court

5 Dec 2006

A court in Kyrgyzstan has ruled that USD25 million paid by mobile operator Bitel in dividends in January 2005 to three subsidiaries of Russian cellco Mobile TeleSystems (MTS) were illegal and must be repaid. At the time the money was paid, MTS did not control the three companies. MTS is currently embroiled in a battle with another Russian company, Rezervspetsmet, over operating control of Bitel, which according to TeleGeography’s GlobalComms database, was the leading cellco in Kyrgyzstan at the end of June 2006, with an estimated 560,000 subscribers, over 90% of the market.

Kyrgyzstan, Russia, Mobile TeleSystems (MTS), Sky Mobile (Beeline)