Regulator rejects MTS bid to purchase New Telephone Co; Vimpelcom sole contender
MOSCOW. March 22 (Interfax) - The Russian Federal Antimonopoly Service (FAS) has rejected an application from Mobile TeleSystems to purchase 100% of New Telephone Company, a GSM mobile operator with 1.5 million subscribers, an MTS representative told Interfax.
A New Telephone representative declined to comment.
The FAS earlier rejected an application from MegaFon , saying that acquisition of New Telephone would give MegaFon more than a 50% share of the market in Primorye.
The latest decision leaves Vimpelcom as the sole contender for New Telephone. It has already received clearance from the FAS for the acquisition. Vimpelcom provides only 3G services in the majority of Russia's far eastern regions. It is most interested in New Telephone for the sake of the company's GSM licenses.
New Telephone's owner, Korea Telecom, is offering the company for an estimated $500 million, market sources told Interfax.
New Telephone is one of the top ten mobile operators in Russia, with over 1.5 million subscribers at the end of January.
RTS$#&: MEGF, RTKM, VIMP