Russian phone deal
Vimpel Communications, Russia #2 mobile phone operator, announced it would buy Russian fixed-line phone company Golden Corporation. Golden Corporation is the leader in providing telephone connectivity to businesses in Russia, with some 400,000 broadband customers. Vimpel has around 60 million wireless customers. Both companies operate in Russia and former parts of the Soviet Union. The deal is for $4.2 billion.
Golden's principle shareholders Norwegian telephone company Telenor ASA (18%) and Russian private-equity firm Alfa Group (26%). The two companies also jointly own Ukrainian phone company Kyivstar, and have major holdings in VimpelCom stock (30% for Telenor and 44% for Alfa Group.). The two companies have been at odds about the direction the companies they own should take.
Next xtep may be Vimple's purchase of Kyivstar, a move favored by Alfa Group and resisted by Telenor. At least so far.
Like many other Western European phone companies, Telenor moved into the Eastern bloc in its attempt to find a growth market. It's not hard to see a reversal, as Russian capital grows, nationalistic pressure increases, and companies like Telenor try to cash out while they can.
8:59:38 PM 
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