MTS Says to Challenge Kyrgyzstan's Bitel Assets Sale

MOSCOW, July 6 (Prime-Tass) -- Russia?s largest mobile operator Mobile TeleSystems (MTS) will challenge the possible sale of assets belonging to Kyrgyzstan?s largest mobile operator Bitel, MTS said in a statement Thursday.

Bitel said Monday that it had decided to sell its assets to Sky Mobile, which was recently bought by Russia's Altimo, the telecommunications arm of Alfa Group.

Altimo said Monday that it was considering the possible purchase.

MTS purchased a 51% stake in Bitel for U.S. $150 million in late 2005, but the purchase was challenged by little-known Russian company Rezervspetsmet, reportedly linked to Altimo. At the moment, Rezervspetsmet has operating control over Bitel, while MTS is seeking to regain control over the leading operator in court.

Bitel controls about 90% of the Kyrgyz mobile market, which had penetration of about 14% as of February 1.

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Posted to the site on 6th July 2006