Telenor moves to block VimpelCom deal

Telenor has commenced legal action that could delay plans by VimpelCom, Russia’s second-largest mobile phone operator, to buy the telecoms assets of Naguib Sawiris, the Egyptian entrepreneur.

Telenor, VimpelCom’s second-largest investor, has asked for the postponement of a planned special meeting of the Russian operator’s shareholders on March 17 to approve the proposed transaction with Wind Telecom, a private company that controls Sawiris’ telecom assets. Norway’s leading telecoms company has begun arbitration proceedings in London to try and preserve its voting rights at VimpelCom, which would be reduced by the Wind Telecom transaction. The deal is supposed to be completed by the end of June, but Telenor does not want the special VimpelCom shareholder meeting to take place until after the arbitration is concluded. It could therefore mean the completion timetable slips. Telenor’s move underlines how its relations with Russia’s Alfa Group, VimpelCom’s largest investor, have ruptured again.