Alfa Group Ready To Pay More For Turkcell Than Telia

ISTANBUL -(Dow Jones)- Russian holding company Alfa Group (ALFAGP.YY) is ready to pay more than TeliaSonera AB (TLSN.SK) for a 27% stake in Turkey's largest wireless operator Turkcell Iletisim Hizmetleri AS (TKC) the Ihlas news agency reported Thursday, citing Turkish daily Hurriyet.

"We have made a higher offer to buy the same stake," the newspaper quoted Alfa Vice President Kirill Babayev, as saying. He didn't elaborate on the amount offered.

Contacted by Dow Jones Newswires Thursday, Babayev declined to comment.

Swedish telecommunications operator TeliaSonera said last week it had reached an agreement with Cukurova to buy 27% of Turkcell for $3.1 billion, increasing its stake to 64.3%.

A TeliaSonera spokesman told Dow Jones Newswires the company is aware of the media reports but remains committed to its acquisition of the Turkcell stake from Cukurova.

"We made an agreement and it's going to be followed through," the TeliaSonera spokesman said. He declined to comment on whether TeliaSonera has sought clarification from Cukurova over a possible counter bid.

TeliaSonera is embroiled in a dispute with Alfa over ownership of Russian wireless operator OAO MegaFon (MGF.YY).

Earlier this month, TeliaSonera, Russian holding company OAO Telecominvest (TCIV.YY) and the IPOC International Growth Fund, which jointly own about 75% of MegaFon, said they will support each other against Alfa and work towards a speedy initial public offering for Megafon. They've been at loggerheads ever since Alfa, which owns a stake in rival operator OAO Vimpel Communications (VIP), bought 25% of MegaFon from interests controlled by financier Leonid Rozhetskin in August 2003.

Agency Web sites: http://www.ihanews.net

http://www.iha.com.tr

(Rod Stone in Stockholm and Anna Galitsina in Moscow contributed to this item.)

(END) Dow Jones Newswires"

Posted to the site on 31st March 2005