Russia's second biggest mobile phone company is in talks to buy fixed-line giant Golden Telecom. VimpelCom is believed to ready to spend $US 4.2 billion on the Russian firm.
If the deal goes ahead, the company would be Russia's first integrated mobile and fixed-line provider. On Monday the two firms said they were in talks. Vimpelcom has offered $US 105 a share for Nasdaq-traded Golden Telecom, an internet, voice and data service provider. The figure is three and a half times the firm's closing price on November 30. Co-head of research at Uralsib Financial Corporation, Konstantin Chernyshev, says the deal could bring Vympelcom “to a new level of development”. “Such a deal will help Vympelcom to transform a mobile provider into a fully-integrated telecom provider, offering a wide range of telecom services, ranging from mobile to fixed local and long-distance communications,” Chernyshev said.