Telenor Annoyed By URS's Launch Of VimpelComs Brand In Ukraine

The Ukrainian mobile operator URS, (affiliated to Russia’s VimpelCom (VIP)), has officially launched VIP’s brand, BeeLine, in Ukraine. However, according to Telenor, VIP’s shareholder, the best way for VimpelCom to enter Ukraine is to buy the largest Ukrainian mobile operator Kyivstar. Telenor has accused VIP management and the company’s other shareholder, Alfa Group, of violations during the purchase of URS in late 2005. Concorde Capital: Note that two months ago VimpelCom offered to buy Kyivstar for USD 5 bln in VIP’s stocks, however, Telenor, Kyivstar’s majority shareholder, agreed only to sell it for cash and only after reaching an agreement with Alfa that either Telenor or Alfa would leave VimpelCom. Now, with VIP developing URS in Ukraine, any delay in solving the conflict means the Norwegian company is more likely to leave VimpelCom. In our opinion the best outcome for all the companies involved would be Alfa leaving Kyivstar and Telenor washing its hands of VimpelCom.