Telenor ASA proposes that VimpelCom acquire Kyivstar

Nordic Business Report, March 20, 2006

NORDIC BUSINESS REPORT-20 March 2006-Telenor ASA proposes that VimpelCom acquire Kyivstar(C)1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com

Norwegian telecomms group Telenor ASA said on Monday (20 March) that it has proposed that the Russian mobile operator VimpelCom acquire 100% of Ukrainian mobile operator Kyivstar for cash.

The transaction would also create a framework for ending Alfa's attacks on Telenor's ownership interests in VimpelCom and Kyivstar, Telenor said.

Telenor has proposed that VimpelCom acquire Kyivstar for not less than USD5bn in cash.

One of the principal conditions of Telenor's proposal is that Telenor and Alfa enter into an agreement providing for a market-based separation mechanism.

The mechanism would permit the party placing the highest value on VimpelCom to make an offer to purchase all of the other party's shares in VimpelCom, and would obligate the other party to sell all its shares in VimpelCom to the offering party.

Telenor added that it had filed an amendment to its existing application to the Federal Antimonopoly Service of the Russian Federation that would permit Telenor to acquire up to 100% of VimpelCom.

One US dollar (USD) is worth approximately 0.57 British pounds (GBP).

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