Rostelecom stake deal given judo chop after deadline expires

11 Apr 2013

Investment fund Marshall Capital (MarCap), which is owned by Russian businessman Konstantin Malofeyev, has announced that its previously agreed deal to sell its 10.7% stake in national operator Rostelecom to a firm affiliated with businessman Arkady Rotenberg has fallen through after the self-imposed deadline expired. Rotenberg, a construction tycoon who used to be President Vladimir Putin’s judo partner, intended to pay around USD1.55 billion for the stake, but it now appears that the two sides have reached a mutual agreement to cancel the transaction. A MarCap statement regarding the development noted: ‘The legally-binding agreement in respect of the sale of Rostelecom shares has been terminated. The sides are free from mutual obligations regarding this deal’. Further, a MarCap representative told Reuters: ‘We are examining various options for the sale of our stake’.

Russia, Rostelecom