VimpelCom, one of Russia's top three mobile operators, will not make any more foreign mergers or acquisitions if the deal with Italy's Wind Telecom goes through, VimpelCom head Alexander Izosimov said in an interview with Kommersant business daily on Thursday.
"If the deal (with Wind Telecom) takes place, we will quit the international merger and acquisition market," Izosimov said, without ruling out domestic M&A deals.
"Usually, domestic deals consolidate the market, synergy effects are undisputable, and everyone understands this. If there appears a possibility for market consolidation, we will keep a watchful eye on it," Izosimov was quoted as saying.
In early October 2010, VimpelCom signed a deal with Wind Telecom, owned by Egyptian billionaire Naguib Sawiris and formerly known as Weather Investments, to create the world's fifth largest telecommunications operator by subscribers. VimpelCom shareholders are expected to vote on the deal on March 17.
The transaction may be delayed however, because Norway's Telenor, a key shareholder in VimpleCom with a 36% stake, has said it will vote against the deal, arguing that the merger scheme through a new share issue by VimpleCom in favor of Wind Telecom violates its pre-emptive rights.
Telenor has already filed a suit with the Commercial Court in London to block the deal.
If the London Court, which will consider Telenor's suit on February 25, upholds the claim, the court's injunction will adversely affect shareholders' opinions of the deal, Izosimov said.
VimpelCom's CEO said, however, he hoped the deal would go through.
"The company is making the purchase at the right time and at the proper price and can within a short period of time create a value for shareholders," he said.
MOSCOW, February 24 (RIA Novosti)
