|
China''s Huawei also gets VimpelCom''s offer on URS deal |
|
MOSCOW, Nov 9 (Prime-Tass) -- China''s telecommunications equipment producer Huawei has received an offer from Russia’s second-largest mobile operator VimpelCom, which would help the Russian mobile operator enter the Ukrainian market by purchasing Ukrainian Radiosystems mobile operator (URS), Vedomosti business daily reported Wednesday, citing a letter from Huawei to VimpelCom.
Sweden''s telecommunications equipment producer Ericsson received a similar offer from VimpelCom, Vedomosti reported last week.
A source close to VimpelCom''s negotiations to buy URS told Vedomosti that VimpelCom held an informal tender to supply equipment, and is now choosing between Huawei and Ericsson.
VimpelCom proposed to the two producers to transfer slightly over U.S. $80 million to URS'' account each, which would URS a more attractive acquisition target as it would have additional cash on its accounts, Vedomosti reported. In turn, VimpelCom would award the chosen producer a large contract to supply equipment.
The contract VimpelCom was ready to award to Ericsson was worth about $400 million, Vedomosti said last week, citing a minority shareholder.
VimpelCom offered Huawei a contract to supply equipment to URS worth $200 million, Vedomosti said Wednesday, citing the letter.
Huawei''s conditions were less attractive to VimpelCom as it asked the mobile operator to make an advance payment of $100 million for equipment and also wanted to get a contract to supply equipment to VimpelCom, the source said.
"At the moment VimpelCom is completing the deal to buy URS," Mikhail Umarov, public relations director of VimpelCom, said.
VimpelCom has been trying to enter the Ukrainian mobile market by executing an option, which was signed in February, to buy URS for U.S. $206.5 million. However, the purchase of URS was blocked by Norway''s telecommunications company Telenor, which said that the price was too high.
VimpelCom''s key shareholders are Telenor, which holds 26.6% in VimpelCom, and Russia''s Alfa Group, which owns 32.9% through subsidiary Alfa Telecom.
Telenor is ready to consider the purchase if the price is "considerably lowered" and if VimpelCom''s board of directors makes the decision on the purchase, Telenor spokesman Dag Melgaard said last week.
It is widely believed Telenor opposed the deal as the purchase may create a competitor to Kyivstar, another Ukrainian mobile operator. Telenor holds 56.5% in Kyivstar, while Alfa Telecom holds 43.5%.
VimpelCom''s recent EGM, held in mid-September, approved the acquisition of URS, but Telenor said that such a decision should be made at the board of directors'' meeting and subsequently threatened to take legal action against VimpelCom''s CEO Alexander Izosimov if VimpelCom went forward in its purchase of URS.
URS, operating under WellCOM and MOBI brands, is licensed to operate in GSM 900 standard throughout the whole of Ukraine. The subscriber base of URS amounted to 160,204 people as of October 1.
Kiev-based Ukrfondinvest holds 31% in URS, British Virgin Islands'' Ravenskroft Holding Ltd holds 20%, Cyprus'' Occidential Management Co Ltd holds 24.5% and the U.S.'' Optima Telecom Inc holds 24.5%. The four shareholders are affiliated with Ukraine''s Privat group, Kommersant business daily said earlier, citing market experts.
(() |
|
|
|
|
|
|
| |
