Telenor to Appeal Ruling It Pay $2.8 Billion Damages to VimpelCom

OSLO (AFP)--Norwegian telecommunications group Telenor on Saturday said it would appeal a ruling by a Russian court to pay damages of $2.8 billion to Russia's Vimpel Communications, calling it "unfounded."

"Telenor believes the ruling is unfounded, and will pursue all possible legal remedies to reverse the decision," the company said in a statement.

"Telenor expects to prevail on appeal," it said.

A court in Siberia ruled in favor of a minority shareholder in VimpelCom, which had complained that Telenor delayed for a year the takeover by the Russian mobile phone group of Ukrainian Radio Systems, the Telenor statement said.

The VimpelCom minority shareholder which brought the complaint was Farimex Products, a company registered in the British Virgin Islands.

"The court stated that the damages should be paid to Vimpelcom. Although named as a third party in Farimex's complaint, VimpelCom has not participated in the case," Telenor said.

Telenor holds a 29.9% stake in Vimpelcom, the No. 2 mobile phone company in Russia.

(END) Dow Jones Newswires

Posted to the site on 16th August 2008