Telenor calls for urgent EGM at Kyivstar

9 Aug 2007

Norway’s Telenor has called for an extraordinary shareholders meeting to resolve the dispute between itself and Russia’s Alfa Group over their joint investment in Ukrainian mobile operator Kyivstar. Earlier this year Telenor was forced to remove Kyivstar from its group accounts due to the protracted legal fight with Alfa over its expansion policy in Ukraine, and at the beginning of this month the Norwegian telco won an arbitration case against Alfa in a New York court, which ruled that Alfa must sell its shares in Kyivstar or divest competing assets. Telenor Executive Vice President Thor Halvorsen said urgent decisions were needed on the following issues: amendments to Kyivstar’s charter; appointment of a new board of directors for Kyivstar; signing a contract with an auditor; and approval of Kyivstar management contracts. The group maintains that ‘Ukraine is party to the international UN treaty UNCITRAL, which makes the arbitration ruling valid and enforceable’, but this week it has been reported in local press that Ukraine’s Supreme Economic Court has disagreed with Telenor’s opinion on the jurisdiction of the US decision.

Ukraine, Kyivstar, Telenor Group