Vimpelcom Can Enter Ukrainian Market

After the representatives of Telenor in board of governors of Vimpelcom (second-largest Russian mobile) failed to approve purchase of Ukrainian third largest mobile operator URS, another Vimpelcom’s stakeholder, Alfa, which strives for entering Ukraine, announced they can enter Ukraine without Telenor approval. To do it, they can reach an agreement with some investment fund, which can buy URS, and give its shares into Vimpelcom’s operation, at the same time selling call option.  This will give the possibility to develop Vimpelcom’s trade mark BeeLine in Ukraine. Concorde Capital: Establishing of Vimpelcom?s trade mark in Ukraine on the basis of URS network will increase the chance that board of governors or shareholders meeting of Vimpelcom will approve URS acquisition. However, such purchase is not beneficial for Telenor, who posses control stake in second largest Ukrainian mobile Kyivstar: entering Vimpelcom to Ukrainian market will create competition between two Telenor affiliates. Thus, acquisition of URS will raise incentives of Telenor to exit Russian operator.