MOSCOW, Mar 29 (Prime-Tass) -- The board of directors of Russia's second largest mobile operator VimpelCom has failed to agree on amendments to the company's charter that would allow the operator to expand outside the Commonwealth of Independent States (CIS), a source in the company said, Vedomosti business daily reported Thursday.
One of VimpelCom's major shareholders, Russia's Altimo, wanted to amend the charter, which currently allows VimpelCom to operate only in the CIS. Representatives of the company's other major shareholder, Norway's Telenor, blocked the amendments, the source said. VimpelCom's board consists of nine directors, three of which represent Telenor, the daily reported. Major decisions must be approved by eight out of nine directors.
Altimo's Vice President Kirill Babayev said that if VimpelCom started expansion before the amendments were approved, the operator's top management could face legal problems, the daily reported.
Altimo recently indicated its interest in buying mobile operators in Southeast Asia, in particular in India, Indonesia and Vietnam.
Kjell-Morten Johnsen, head of Telenor Russia, said in February that Telenor was against VimpelCom acquiring "expensive and disputed" foreign assets from Russian industrial and financial holding Alfa Group, parent company of Altimo.
Telenor and Altimo have been in a feud for over a year over VimpelCom's expansion, which started when VimpelCom purchased a Ukrainian operator amid opposition from Telenor.
VimpelCom operates in Russia, Armenia, Georgia, Kazakhstan, Tajikistan, Ukraine and Uzbekistan.
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Posted to the site on 29th March 2007
Posted to: www.cellular-news.com/story/22884.php