PRESS: Telenor Says Russia's Alfa Group Wants to Merge Assets
MOSCOW, June 26 (Prime-Tass) -- Russian holding Alfa Group has proposed to Norwegian telecommunication company Telenor to merge their telecommunications assets on emerging markets, Kjell-Morten Johnsen, chairman of Telenor Russia, said speaking on a Norwegian TV channel, Kommersant business daily reported Monday.
Johnsen said that the two companies had not discussed the deal in detail, adding that Telenor is ready to consider any specific offer by Alfa Group, the daily reported.
"Indeed, we are currently choosing a strategic partner for joint business development on emerging markets," Altimo's Vice President for Public Relations Kirill Babayev said, the daily reported.
Altimo is the telecommunications arm of Alfa Group.
A source told the daily that in 2005 Alfa Group held similar negotiations on merging its assets with Finnish-Swedish telecommunications operator TeliaSonera, but no agreement was reached then.
Analysts surveyed by the daily were skeptic about the possible deal saying that the Norwegian government, which holds 54% in Telenor, is unlikely to dilute its stake in order to let Alfa Group enter Telenor.
Altimo holds 32.9% in Russia?s second largest mobile operator VimpelCom, 25.1% in Russia?s third largest mobile operator MegaFon, 29% in U.S.-registered telecommunications operator Golden Telecom, 43.5% in Ukraine's largest mobile operator Kyivstar and 13.2% in Turkey?s largest mobile operator Turkcell.
Telenor holds 26.6% in Russia?s second largest mobile operator VimpelCom, 20% in Golden Telecom and 56.5% in Kyivstar. In addition, Telenor holds controlling stakes in five mobile operators outside the Commonwealth of Independent States, namely, Pakistan Telenor, Thailand's DTAC, Malaysia's DIGI, Bangladesh's GrameenPhone and Montenegro's Promonte, the daily reported.
Telenor and Altimo have been in a conflict for over a year on the development of VimpelCom in Ukraine and have not yet reached any agreement. VimpelCom currently operates in Ukraine through minor fully owned operator URS.
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Posted to the site on 26th June 2006
