Telenor Tells Alpha To Take A Hike.

This morning Telenor suggested Vimpelcom (VIP) and its shareholder Alfa take advantage of its “market-based separation proposal.” Telenor wants VIP to buy Kyivstar for USD 5 bln in cash (VIP wanted to buy Kyivstar using VIP shares). Next, Telenor has suggested that the two companies work out a mechanism according to which the “party placing the highest value on Vimpelcom” (i.e. Telenor or Alfa) makes an offer to purchase all of the other party’s shares in the company. Concorde Capital: These statements clearly mean Telenor is no longer interested in working with Alfa in either Kyivstar or VIP. Earlier VIP offered to buy Kyivstar from Telenor in a way that would cut Telnor out of control in VIP and Kyivstar (refer to our news from February 13), now the Norwegian operator is proposing its own scenario to solve the conflict. It looks like Telenor wants to be the party, which will not be very palatable for Alfa Group.