MegaFon and Synterra holding merger talks

11 Sep 2009

According to a report by Russian daily Kommersant, Russia’s third largest mobile operator MegaFon has secured a preferential right to purchase Synterra, entering a two-month period of exclusive negotiations with the long-distance carrier’s parent company, Promsvyaz Holding. Synterra operates the second largest long-distance network in Russia and has WiMAX operations in Moscow, Kursk and Belgorod, with licences covering all towns with over 100,000 inhabitants. In recent months the company has reportedly attracted the interest of Vimplecom and Comstar UTS, with the latter linked to a USD850 million bid for the telco. Kommersant reports that both parties have ceased carrying out respective processes of due diligence on the company. MegaFon’s period of exclusivity will end in mid-October.