Alfa To Swap Kyivstar For Vimpelcom?

In a letter to Telenor, Russia’s Alfa Group proposed swapping Kyivstar shares for Vimpelcom shares. Alexander Paraschiy: Alfa wants to obtain 26.6% of Vimpelcom and is ready to give to Telenor 43.5% of Kyivstar; however, the opposite exchange is also possible. If the swap occurs, one of the companies will accumulate 63.5% of Vimpelcom and other party will accumulate 100% of Kyivstar. Telenor is unlikely to be willing to part with its stakes from either Kyivstar or Vimpelcom: they de facto control Kyivstar and thus won’t be too excited about increasing their stake from 56.5% to 100%. Thus, the exchange looks unlikely.