Kyrgyz Court Cancels Decision Upholding Alfa's Right on Bitel

MOSCOW, Oct 31 (Prime-Tass) -- Kyrgyzstan's Bishkek City Court has cancelled an earlier issued court ruling upholding Russia's Alfa Group ownership right to Kyrgyzstan's Bitel mobile operator, Bitel's press office said Monday.

The court has upheld the appeal filed by Kyrgyz Mobil Tel Limited, Flaxendale Holdings Limited, and George Resources, which are all affiliated with Alliance Capital, Bitel said citing Kanat Asylov, legal adviser of Kazakhstan's Alliance Capital.

On April 15, Bishkek Interdistrict Court declared that Fellowes company, indirectly controlled by Alfa Group, is the sole owner of Bitel and that Kyrgyz Mobil Tel Limited, Flaxendale Holdings Limited, and George Resources, which controlled 100% in Bitel, had to transfer the ownership right of Bitel's 100% stake to Fellowes.

In May, Alliance Capital said that it would not transfer the shares of Bitel to Alfa Telecom, as it wanted to appeal the court decision.

In 2004, Alfa Telecom, Alfa Group's subsidiary, bought a controlling stake in Fellowes, which held an option to buy 100% in Bitel.

In early 2005, Fellowes filed a lawsuit in the Bishkek Interdistrict Court against Bitel's shareholders, seeking ownership in Bitel.

Asylov said then that the option of Fellowes to purchase a 100% stake in Bitel expired on December 1, 2003.

Bitel is the only GSM operator in Kyrgyzstan and provides services to about 300,000 customers, according to AC&M estimates.

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Posted to the site on 31st October 2005