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Alfa: Would Only Seek Vimpelcom If Telenor Upgrades Stake
MOSCOW -(Dow Jones)- The telecommunications arm of Russian financial-industrial holding Alfa Group (ALFAGP.YY) said Tuesday that it would only seek to take control of Vimpel Communications (VIP) if fellow shareholder Telenor ASA (TELN) sought to increase its stake.
"Alfa Telecom intends to pursue majority control in Vimpelcom only if Telenor begin to build a greater stake in the business," the company said in a press release.
Alfa owns 33% of Vimpelcom, Russia's second-largest wireless operator; Telenor owns 27%.
Alfa said in its press release that it had written to Vimpelcom's shareholders urging them to support its candidates at the company's annual general meeting, which is scheduled for June 22.
Alfa also reiterated its support for Vimpelcom's entry into neighboring Ukraine's fast-growing cellular market via the acquisition of Ukrainian RadioSystems, which operates under the WellCom brand.
Telenor, which wrote to Vimpelcom shareholders earlier this month to clarify its position, is against the Ukrainian deal, saying it would destroy shareholder value.
Vimpelcom's board rejected the acquisition in April, with Telenor's representatives voting against. Alfa, however, intends to call an extraordinary shareholders meeting for mid-July for shareholders to vote on the deal.
Alfa added, however, that it would not seek to amend Vimpelcom's charter at the EGM.
"Alfa Telecom believes that the current charter of Vimpelcom provides the right mechanisms to safeguard the rights of all shareholders," the company said.
Alfa had said previously that it would propose changes to Vimpelcom's charter so that deals such as that of Ukrainian RadioSystems could be approved by a simple majority of the board. Currently, a "super-majority" of 8 of the 9-man board is required.
Company Web site: http://www.vimpelcom.com
-By Andrew Langley, Dow Jones Newswires; +7 095 974 80 55; andrew.langley@dowjones.com
(END) Dow Jones Newswires"
Posted to the site on 14th June 2005