Tele-snore: Telenor-Alfa go from boardroom to courtroom……....again

2 Oct 2007

Norwegian telco Telenor said Alfa Group boycotted a shareholders meeting of Ukrainian cellco Kyivstar yesterday, and that it will consequently take legal action against its estranged Russian investment partner, reports Reuters. ‘Alfa has once again chosen to boycott a legitimate Kyivstar shareholders meeting,’ Telenor executive vice president Jan Edvard Thygesen said in a statement. Dag Melgaard, spokesman for Telenor, added: ‘This will have consequences for Alfa’s reputation in the international business environment, and we will also run this through the possible courts in order to force Alfa to behave in a proper manner.’ Telenor had hoped to get closer to a solution to its long-running battles with Alfa and its telecoms arm Altimo, which have caused Telenor to remove its 56.5% owned unit Kyivstar from its group accounts and prevented the cellco from forming a full executive board. A New York arbitration court ruled in the Norwegian firm’s favour in August and ordered Alfa to sell its holding vehicle Storm’s 43.5% Kyivstar stake or its interests in certain rival Ukrainian operators, and told the Russian group to drop court injunctions preventing Telenor from gaining information on Kyivstar operations. However, Alfa did not recognise the jurisdiction of the US court in Ukraine, whilst Telenor maintains that the ruling is enforceable under international treaties signed by Ukraine.

Ukraine, Kyivstar, Telenor Group