Golden Telecom To Purchase Rostelekom's Stake In Sovintel

Communications Today, Nov 7, 2001

Russian telecom operator Golden Telecom [GLDN] said Tuesday that it has signed a memorandum of understanding to purchase Russian national long-distance carrier Rostelekom's 50 percent stake in their joint Moscow telecom venture Sovintel.

Golden, Russia's largest Internet provider and an alternative fixed line carrier, said it will pay Rostelekom $52 million in cash and give it 3.9 million Golden Telecom shares in the deal. Golden Telecom also said that Rostelekom will receive a seat on its board.

Sovintel General Director Alexander Vinogradov will replace Stewart Reich as CEO of Golden Telecom, the company said.

Each company's board of directors and Russian regulatory authorities still must approve the deal, Golden Telecom said, which is expected to close early next year. >TK Verizon Communications [VZ]: