Deutsche Telekom To Sell 10% MTS Stake On Russian Market

FRANKFURT -(Dow Jones)- German telecommunications company Deutsche Telekom AG (DT) Monday said it will sell its stake of about 10% in Russian firm OJSC Mobile TeleSystems, or MTS, in an accelerated book-building process.

The sale, to begin Monday, will take place on the Russian capital markets, Deutsche Telekom said.

UBS Investment Bank and Deutsche UFG have been appointed joint bookrunners for the sale of the stake, Deutsche Telekom said.

Last month Russian financial-industrial holding company AFK Sistema (SSA.LN) said it was still talking to Deutsche Telekom about buying the 10% stake in MTS.

Under a 2003 shareholder agreement, Sistema had the right of first refusal on the MTS block. Only Sistema had the right to terminate the agreement, a spokesman said at the time.

However, a Deutsche Telekom spokesman declined to comment on the matter.

Company Web site: http://www.deutschetelekom.de

-By Jan Hromadko; Dow Jones Newswires; +49 69 29 725 500; jan.hromadko@dowjones.com

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Posted to the site on 12th September 2005