Vimpelcom, Russia’s second largest mobile phone company, has made a $5 billion (4.2 billion) bid to buy Kyivstar, the leading mobile company in Ukraine, owned by Telenor, a Norwegian operator, and the Alfa Group, one of Russia’s largest industrial holding companies. They are also the main shareholders in Vimpelcom. The two groups are locked in a bitter dispute over Vimpelcom’s strategy in Ukraine. Telenor has reportedly said that the Alfa Group will need to prove that it is willing to resolve all the disputes over corporate governance before it can consider discussing an offer of a stake in Kyivstar. Telenor currently owns 56.5 per cent of Kyivstar, allowing it to consolidate its results. The merger would reduce Telenor’s stake in the combined company to below majority.
