Telenor initiates arbitration proceedings with Vimpelcom and Altimo
MOSCOW. Jan 31 (Interfax) - Norwegian telecommunications holding Telenor has initiated arbitration proceedings with Vimpelcom Ltd. and Altimo Holdings for the purposes of protecting its rights for a preferred acquisition of shares in Vimpelcom Ltd, the company said in a statement.
Anna Ivanova-Galitsyna, representative for Telenor's Russian subsidiaries, said that the Norwegian holding has gone to the London Court of Arbitration.
Telenor is asking for recognition that Vimpelcom's purchase of Wind Telecom from Egyptian billionaire Naguib Sawiris is not, according to the Russian cellular provider's shareholder agreement, a non-arm's length transaction. As a result, Telenor could use its preferred rights to buy out shares in Vimpelcom through an additional share issue in the framework with Wind if the transaction goes through.
In addition, Telenor has proposed moving the date of the shareholder meeting where a final decision should be made on the Sawiris deal. The Norwegian company wants to hold the meeting after the arbitrage court produces a decision. The meeting is currently slated for March 17, 2011.
Ivanova-Galitsyna said that the court process could go on for several months. "This depends on the desire of the interested parties to settle this issue. If Vimpelcom agrees to let Telenor exercise its preferred right to buy out shares, we will not come out against holding the meeting as scheduled," she said.
Altima has yet to comment on Telenor's actions.
Vimpelcom confirmed to Interfax that it had received a notification about the start of the arbitration process.
