The shareholders of Tele2 and Beeline to the end of last year held talks about a possible merger. About this “Vedomosti” citing sources close to participants of negotiations.
According to the publication, in late 2015, the shareholders Теlе2 and “Beeline” have met to discuss the possibility of merging. There are no immediate results this conversation isn’t had, and before the New year, the discussion stopped. One of the interlocutors at the same time said that it is still about the suspension of the negotiations.
Interlocutors indicated that it was unclear who initiated the negotiations. The shareholders of Tele2 could go at them for delaying the payback period of construction, and Cut the deal may be favorable, as it hopes to regain market position in Russia while maintaining a high debt load. While two people stated that it was about the possible purchase of “Beeline”.
The magazine says the possible cause of the suspension of the negotiations. “Beeline” need to peacefully settle the investigation by U.S. officials about violations in Uzbekistan. In the USA I suspect that VimpelCom Ltd was paid a firm linked with the daughter of President Islam Karimov. If the company will negotiate with Tele2, a part of which shareholders (Yuriy Kovalchuk and VTB) are under U.S. sanctions, it could hinder the progress of the negotiations.
According to senior analyst “Alpari” Anna Bodrova, the combined company will be able to save on investment and operating costs by combining their networks and base stations. During the economic downturn, this argument can be decisive for the shareholders. The representative of VTB claims that the information about negotiations was “absolutely untrue”: “the transaction was not discussed. Moreover, at the moment this proposal we are not interested”. Representatives of VimpelCom, Beeline and Tele2 declined to comment.