MOSCOW, February 28 (RIA Novosti) - Russia's antimonopoly chief said Tuesday he doubted his agency would be able to reach a swift decision on an ongoing dispute between a Norwegian telecom company and a major Russian holding over increasing their stakes in Vimpelcom, a Russian cell phone operator.
Igor Artemyev, the head of the Federal Anti-Monopoly Service (FAS), said: "There is little hope that a decision will be made in the foreseeable future," adding that his agency could only make a ruling after the passing of a federal law on foreign investment.
VimpelCom (RTS ticker: VIMPG), Russia's second largest mobile phone operator, is majority owned by Norwegian operator Telenor, and Altimo, the telecom arm of Russia's Alfa Group. The conflict between Telenor and Alfa Group first erupted over VimpelCom's plans to enter the Ukrainian cell phone market.
Telenor holds 26.6% of shares in VimpelCom, while Altimo (previously named Alfa Telecom), holds a 32.9% stake.
Telenor and Alfa Group filed applications with the FAS last summer seeking to increase their stakes in VimpelCom.
The dispute first began when Alfa Group supported a VimpelCom deal to acquire Ukrainian Radio Systems, a leading cell phone operator in Ukraine. However, Telenor was against the deal, saying it was overpriced.
The deal was struck in the fall of 2005 and in January 2006 Telenor filed three lawsuits with a Moscow arbitration court against VimpelCom to challenge the deal.
Recently VimpelCom sent an offer to Telenor and Altimo, to buy a 100% stake in Kyivstar GSM, another Ukrainian mobile operator, to end the dispute. Telenor and Alfa Group are the core shareholders of Kyivstar. If the deal is approved, VimpelCom intends to merge two Ukrainian operators into one business.
VimpelCom is best known for the Beeline trademark, one of Russia's most popular mobile operators. Telenor holds 26.6% of shares in VimpelCom, whereas Russia's leading private equity group Altimo (previously named Alfa Telecom), the telecoms arm of financial and industrial holding Alfa Group, holds a 32.9% stake.
On Sunday, the Moscow Arbitration Court adjourned consideration of Telenor's lawsuit against VimpelCom.
