Russia’s Vimpelcom to buy Golden Telecom for $4.3 billion
21 Dec 2007
Russia's second-largest mobile operator Vimpelcom has agreed to buy Golden Telecom - Russia's largest independent fixed-line operator - for about $4.3 billion, industry sources indicated on Friday 21 December. A formal announcement was expected later in the day.
Vimpelcom will pay $105 for each Golden Telecom share - a 5 per cent premium to its closing price on Thursday - The Wall Street Journal reported on Thursday. The deal gives Vimpelcom a headstart in bundling mobile and fixed-line services in Russia.
Both Vimpelcom and Golden Telecom have Russian private equity group Alfa and Norway's Telenor as strategic shareholders. Alfa and Telenor have been locked in a dispute over their Ukrainian venture, and analysts say their agreement to support Vimpelcom's takeover of Golden Telecom may indicate a truce is in the offing.
