Russia's MTS Board May Mull Future of Current President on Thu

MOSCOW, April 12 (Prime-Tass) -- The board of directors of Russia?s largest mobile operator Mobile TeleSystems (MTS) plans to consider an issue related to the company's president position on Thursday, a source close to the company told Prime-Tass Wednesday.

The source did not specify whether the board would consider the departure of the company?s current president.

MTS' President Vasily Sidorov, whose contract expires in late 2006, has been rumored to be leaving the company next week.

Leonid Melamed, general director of Sistema's affiliate, insurance company Rosno, may replace Sidorov as president of MTS, Kommersant business daily reported Wednesday.

In late December 2005, Vladimir Yevtushenkov, chairman of AFK Sistema, MTS' parent company, criticized MTS' management for the company?s weak share price performance in 2005, blaming it on poor marketing and public relations decisions.

Following the release of MTS' financial results for the third and fourth quarters of 2005, MTS' stock fell about 10% each time.

MTS' ADRs have fallen 6.7% since the beginning of the year to U.S. $32.640, while the RTS benchmark index rose 38.0% in this period of time.

MTS is the largest mobile operator in Russia and Central and Eastern Europe and is licensed to provide services over an area with a total population of 233.1 million people.

MTS' subscriber base stood at 61.05 million people as of March 31, including 45.84 million people in Russia.

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Posted to the site on 12th April 2006