Asset swap to finally end dispute between telecommunication companies
8 Dec, 2006 07:20
Britain's Financial Times is reporting that Russian telecommunications investment company Altimo and Norway's mobile phone company Telenor are considering a $US 4 BLN asset swap.
Both Altimo and Telenor have assets in Ukranian mobile phone operator, Kievstar, and through their assets in Russian Vimpelcom they both have stakes in Kievstar's competitor Ukranian Radio Systems. So Altimo suggested ending this conflict of interests. Altimo has proposed to Telenor a straight swap of Altimo's stake in Ukranian mobile phone operator Kievstar, for Telenor's stake in Vimplecom. Altimo also said it will consider exchanging its Vimpelcom stake for control of Kievstar. Telenor has confirmed it's considering the proposal.The offer comes in the wake of a series of strategy disagreements between Altimo and Telenor, over the management of their joint holdings.