Telenor Says to Continue Talks with Altimo on VimpelCom

MOSCOW, April 27 (Prime-Tass) -- Norwegian telecommunications company Telenor and Altimo, the telecommunications arm of Russia's Alfa Group, have agreed to continue talks on the possible acquisition of Kyivstar by VimpelCom, Telenor said in a press release Thursday.

Telenor and Altimo are shareholders in both VimpelCom and Kyivstar.

Telenor?s Executive Vice President and Head of Eastern/Central Europe Jan Edvard Thygesen held talks on Thursday with Altimo's General Director Alexei Reznikovich on the issue, Telenor said.

Telenor and Altimo have been in a conflict over VimpelCom's expansion in Ukraine.

As a way out of the conflict, VimpelCom has proposed purchasing 100% of Ukraine's largest mobile operator Kyivstar, owned by Telenor and Altimo, for U.S. $5 billion in cash and equity.

Telenor later made a counter offer for VimpelCom to pay $5 billion in cash to acquire 100% in Kyivstar, while the deal would also include the signing of a market-based separation agreement in VimpelCom between the key shareholders.

The latter clause has not yet been accepted by Altimo.

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Posted to the site on 27th April 2006