Telenor has announced that it did not intend to support VimpelCom Ltd’s planned acquisition of Weather Investments.
VimpelCom Ltd’s supervisory board will meet tomorrow to vote on the final approval of the merger, which was first announced in…
Telenor has announced that it did not intend to support VimpelCom Ltd’s planned acquisition of Weather Investments.
VimpelCom Ltd’s supervisory board will meet tomorrow to vote on the final approval of the merger, which was first announced in October.
“We strongly support VimpelCom’s expansion in accordance with the principles agreed at the time the company was created. However, in our capacity as a shareholder of VimpelCom Ltd., we do not believe this transaction makes strategic or financial sense for VimpelCom’s shareholders,” said Telenor spokesman Dag Melgaard in a statement.
The transaction must receive five votes to be approved. The nine-member board of VimpelCom Ltd has three members nominated by Telenor, three by Altimo and three independent members.
Last week, TelecomFinance sources said that VimpelCom Ltd had appointed banks for US$6bn debt package for the merger.
VimpelCom is advised by UBS, Deutsche Bank and Akin Gump Strauss Hauer & Feld, while Weather is advised by Lazard, EFG-Hermes, Credit Suisse and Cleary Gottlieb Steen & Hamilton. Citigroup was financial adviser and provided a fairness opinion to the supervisory board of VimpelCom.
Both Altimo and VimpelCom Ltd declined to comment.
