Read more in section
General Country Life: Where to invest in farmland Today at 16:51
General Ukraine sees almost 1 percent inflation in October Today at 12:43
Business Ukraine pays Russia gas debt, easing dispute fears Yesterday at 22:32
General Delinquent borrowers return about Hr 27 million in loan funds to banks, says security service Yesterday at 21:53
General Naftogaz may face problems paying for November gas imports Yesterday at 21:29
General Economy Ministry confirms GDP fall forecast for 2009 at 12% Yesterday at 18:14
General Fitch upgrades Naftogaz to 'CCC'; assigns expected bond rating of 'B' Yesterday at 17:31
General New generation satellite technologies to be implemented in Ukraine Yesterday at 16:03
Business Focus Business Sense with Bogdan Prots Two days ago at 21:48
Most popular Business
Kommersant: MegaFon mulls VimpelCom share buy
July 04 at 12:20 | Interfax-UkraineIt is not the first time MegaFon has floated unexpected acquisition plans, although they have often failed to materialize.
The Bermuda-based fund IPOC announced plans in 2006 to spend $1 billion-$1.5 billion to purchase shares in Russian telecommunications companies, including VimpelCom. Late last year MegaFon was considering buying up shares on the market in a host of Svyazinvest subsidiaries.
Now company management has proposed acquisition of up to 5% of shares in VimpelCom and even submitted the matter to the board of directors meeting on July 1. No decision on the issue was made, one of Kommersant's sources said.
A senior official at MegaFon told Kommersant the shares would be a "portfolio investment." The sources did not say why MegaFon would want to invest its cash in such a volatile instrument or why the VimpelCom was chosen rather than another telecom or a company in an entirely different sector.
The 52-week high for VimpelCom is $28.31 (on July 21, 2008) and the low is $4.81 (March 9, 2009). VimpelCom shed 5% yesterday to close at $11.57.
At that price, a 5% stake would cost just under $590 million.
Alfa Group, which owns 25.1% of MegaFon shares, also has a 44% stake in VimpelCom. The other major shareholder in VimpelCom is Norwegian Telenor, which has been engaged in a drawn out conflict with Alfa and is currently fighting to keep its stake.
Court bailiffs are currently preparing to sell 26.6% of VimpelCom shares, out of the 29.9% stake held by Telenor, in order to secure payment of $1.7 billion a court has ordered the Norwegian company to pay VimpelCom. Eighth arbitration court in Omsk ordered Telenor to compensate VimpelCom for losses stemming from delays in acquiring Ukrainian Radio Systems. The suit was filed by Farimex, a little-known company that Telenor claims is acting on behalf of Alfa Group.
No market participants or potential strategic investors have officially aired plans to purchase shares from Telenor's stake if it is ever put up for sale.