Svyazinvest reveals merger plans

9 Oct 2009

Yevgeny Yurchenko, general director of Russian conglomerate Svyazinvest, has outlined the company’s plans to restructure its telecoms holdings, TradingMarkets.com reports. Under the plan the firm will merge all of its telecoms holdings, including the seven regional fixed line operators and long-distance specialist Rostelecom, into a single company which will provide fixed line telephony, broadband and mobile services across the whole country. Yurchenko said the company still needs to work on strengthening its mobile coverage and assets, but will first focus on achieving a leading position in the fixed and broadband markets and strengthening its position in the corporate segment. The merger is expected to improve the company’s appeal to investors, while also reducing the cost of group financing and management.