PRESS: Russia's Altimo in Talks to Buy Stake in Indian Cell Co

MOSCOW, Jan 26 (Prime-Tass) -- Altimo, the telecommunications arm of Russian industrial and financial holding Alfa Group, is in talks to buy a minority stake in India's fourth largest mobile operator Hutchinson Essar (HE), Kommersant business daily reported Friday.

Teijo Pankko, Altimo's CFO, told the news agency Press Trust of India that Altimo may buy the stake in a consortium with India's Essar Group, which already has 33% in the operator, and India's Hinduja, the daily reported.

The remaining 67% stake in HE is controlled by Hutchinson Telecommunications International, the daily reported.

Altimo's Vice President Kirill Babayev denied the report, Kommersant said.

HE, founded in 1994, controls 16% of the Indian market and serves 22.3 million users. The company's network covers three Indian states with a combined population of about 191 million people.

HE is estimated to have a total market value of around U.S. $13.5 million, the daily reported.

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Posted to the site on 26th January 2007