Russia's telecom company AFK Sistema buying into fixed-line Svyazinvest

Russia's telecom conglomerate AFK Sistema is buying a 25% stake in the fixed-line holding Svyazinvest via its fixed-line operator Comstar, according to Reuters. The cost of the deal is $US 1.3 BLN.

The blocking stake in Svyazinvest will give AFK Sistema a veto at board level and an advantage in the re-organisation of the telecoms giant. AFK Sistema won't yet comment on the deal.

The government has repeatedly delayed the privatisation of Svyazinvest, in which it has a 75% controlling stake. It is now considering an option to merge the company with its subsidiaries, as an alternative to privatization.