Russian court blocks Megafon, Turkcell merger

15 Oct 2010

A Moscow appeals court has blocked Alfa Group and TeliaSonera from combining their stakes in mobile operators Megafon and Turkcell, business daily Vedomosti reports. As reported by CommsUpdate in April 2010, Alisher Usmanov, Megafon’s third largest shareholder, instigated legal proceedings to block the deal, and Usmanov has now confirmed his intention to buy out his fellow shareholders, the paper reports. The court approved the appeal filed by Usmanov’s company Telecominvest, which claimed that the deal violated rules on foreign investment in strategic industries in Russia. While Telecominvest was invited to participate in the merger of Russian cellco Megafon and Turkish mobile operator Turkcell, the company refused, favouring consolidation in the Russian market. This is the second appeal by Telecominvest; an earlier court hearing ruled in favour of TeliaSonera and Alfa, who are expected to appeal against the new decision.

Russia, MegaFon, Telia Company, Turkcell