Altimo proposes share swap

8 Dec 2006

The Russian telecoms investment group Altimo and Norway’s Telenor are reportedly considering a USD4 billion asset swap which will resolve their long-running disagreements. Altimo CEO Alexey Reznikovich told the Financial Times that he has written to the Norwegian telco suggesting a deal. Altimo, which is part of Russian industrial conglomerate Alfa Group, and Telenor have stakes in Russia’s number-two cellular operator Vimpelcom and Ukrainian cellco Kyivstar, but have fallen out over the management of the firms. Altimo is proposing a swap of its 43.5% stake in Kyivstar for Telenor’s 26.6% interest in Vimpelcom, saying both these holdings are worth around USD4 billion. Alternatively, Altimo could also take control of Kyivstar and give up its stake in Vimpelcom if Telenor does not agree to the first plan.

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