Vimpel Board Doesn't OK Ukranian Radiosystems Buy

NEW YORK (Dow Jones)--Vimpel Communications' (VIP) board failed to approve the potential acquisition of Ukrainskiye Radiosystemy, or Ukranian Radiosystems, by the necessary eight out of nine total votes.

In a press release Friday, the provider of cellular telecommunications said five members of its nine-member board approved the purchase.

Therefore, the request from Eco Telecom Ltd. to convene an extraordinary general shareholders meeting to vote on the acquisition was withdrawn.

Dow Jones reported Thursday that Vimpel's core shareholders, financial-industrial group Alfa Group and Norwegian telecom operator Telenor ASA (TELN), were in disagreement as to Vimpel's entry into Ukraine.

Alfa owns about 33% of Vimpel, while Telenor owns about 27%.

Alfa wanted VimpelCom to buy Ukranian Radiosystems. However, Dow Jones reported that the the purchase would have created "a major headache for Telenor which would then face Vimplecom as a direct competitor to Kyivstar, Ukraine's second-largest mobile operator."

Telenor owns 56% of Kyivstar, while Alfa owns 44%.

-Thomas Derpinghaus; Dow Jones Newswires; 201-938-5400; asknewswires@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 24th April 2005