Telenor forced to accept VimpelCom’s newest acquisition / News / The Foreigner

Telenor forced to accept VimpelCom’s newest acquisition. Norwegian Telenor’s influence in VimpelCom Ltd. could be in danger after six VimpelCom board members voted in favor of a revised bid for established Egyptian company Wind Telecom. Wind Telecom owns a number of cellular licenses around the world. Its acquisition would grant Telenor access to the mobile market in Algeria, Bangladesh, Italy, Pakistan and Canada. The question of buying Wind Telecom arose before Christmas last year. Telenor’s representatives wanted to invoke the right to buy additional shares in VimpelCom, preventing Wind acquiring them as part of the deal, according to Aftenposten.

telenor, alfa, vimpelcom, windtelecom, glebfetisov, dagmelgaard, arildnysaether, fondsfinans



The Foreigner Logo

The Foreigner is an online publication for English speakers living or who have an interest in Norway. Whether it’s a glimpse of news or entertainment you’re after, there’s no need to leave your linguistic armchair. You don’t need to cry over the demise of the English pages of Aftenposten.no, The Foreigner is here!

Norske nyheter på engelsk fra Norge. The Foreigner er en engelskspråklig internett avis for de som bor eller som er interessert i Norge.

Google+ Google+ Twitter Facebook RSS RSS



News Article

LATEST:

Telenor forced to accept VimpelCom’s newest acquisition

Published on Tuesday, 18th January, 2011 at 12:23 under the news category, by Nicoleta Dumitrache Sincan.
Last Updated on 26th January 2011 at 22:08.

Norwegian Telenor’s influence in VimpelCom Ltd. could be in danger after six VimpelCom board members voted in favor of a revised bid for established Egyptian company Wind Telecom.

Telenor Fornebu (illustration photo)
Telenor Fornebu (illustration photo)
Photo: © 2007 Kjetil Ree/Wikimedia Commons


Wind Telecom owns a number of cellular licenses around the world. Its acquisition would grant Telenor access to the mobile market in Algeria, Bangladesh, Italy, Pakistan and Canada.

The question of buying Wind Telecom arose before Christmas last year. Telenor’s representatives wanted to invoke the right to buy additional shares in VimpelCom, preventing Wind acquiring them as part of the deal, according to Aftenposten.

On January 10, 2011, the Alfa Group, Telenor’s major partner in VimpelCom, informed VimpelCom Russian billionaire Gleb Fetisov had bought 0.7 percent of Wind Telecom's shares.

The three Telenor board members voted against the revised transaction, arguing it would be detrimental to VimpelCom’s shares.

"We did not support the previous proposal because it made neither financial nor strategic sense. The benefits of the revised submission are even smaller, considering that what is  being offered now is even more generous towards Wind Telecom’s owners. Current VimpelCom shareholders will be exposed to a significantly further dilutive acquisition, if the buy-up is carried out under the conditions the board has adopted," Telenor’s director of Communications, Dag Melgaard, says in a press release.

Telenor also believes VimpelCom’s main purpose by purchasing Wind Telecom is to undermine Telenor’s rights.

"We regard this as an obvious deception in violation of the shareholder agreement for VimpelCom. This is an artificial construction, whose sole aim is to deprive Telenor of its pre-emptive right, and we are going to defend our rights in order to protect Telenor’s and minority shareholders' interests in VimpelCom. We are going to vote against the approval of the issuance of new shares to the owners of Wind Telecom at the forthcoming VimpelCom AGM, and we encourage minority shareholders to do the same”, added Mr Melgaard.

He also admitted there is some disagreement between Telenor and the Alfa Group, and that this is a reminiscent of what happened in 2005, when Telenor prevented VimpelCom from buying the URS Ukrainian mobile operator, reports Aftenposten.

Telenor currently has an ownership interest of 36 percent of the voting shares and a 39.6 percent economic stake in VimpelCom.

Arild Nysæther, analyst at the Fondsfinans investment firm, told Dagens it that “Telenor will be dramatically diluted if this goes through, and may lose all influence in VimpelCom. The remaining shareholders will have full voting control, and shareholders’ agreement will be in jeopardy next time around,” he says.



Published on Tuesday, 18th January, 2011 at 12:23 under the news category, by Nicoleta Dumitrache Sincan.
Last updated on 26th January 2011 at 22:08.

This post has the following tags: telenor, alfa, vimpelcom, windtelecom, glebfetisov, dagmelgaard, arildnysaether, fondsfinans.





  
Do NOT follow this link or you will be banned from the site!