Alfa Bank Plans to Create Major Telecom Company

MOSCOW, Aug 9 (Prime-Tass) -- Russian major bank Alfa Bank plans to create a large Russian telecommunications company, Pyotr Aven, president of Alfa Bank, said at a meeting with President Vladimir Putin Wednesday.

The key assets of the yet-to-be-created company are expected to be located in Russia and the Commonwealth of Independent States (CIS), but the company is likely to be engaged in the telecommunications business in other countries as well, Aven said, adding that Alfa Bank would be the key shareholder of the company, ITAR-TASS reported.

Alfa Bank is a key unit of Russian financial and industrial holding Alfa Group. Alfa Group's head Mikhail Fridman earlier said that Alfa Group was looking to swap its telecommunications assets for a stake "in a single Western company."

Alfa Group controls a number of telecommunications operators in Russia and the CIS via its telecommunications arm Altimo. Altimo controls a 32.9% voting stake in Russia?s second largest mobile operator VimpelCom and a 29% stake in U.S.-registered telecommunications operator Golden Telecom. It also indirectly owns about 44% in Ukraine's largest mobile operator Kyivstar, a 25.1% stake in Russia?s third largest mobile operator MegaFon and a 13.22% stake in Turkey's largest mobile operator Turkcell.

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Posted to the site on 9th August 2006