Russia's largest mobile operator Mobile TeleSystems will not bid at an auction to sell Ukraine's fixed-line monopoly Ukrtelecom , a source familiar with the situation said on Tuesday.
The source also told RIA Novosti news agency that MTS had decided that its price did not comply with return on investment criteria set by MTS.
MTS declined to comment.
Ukraine's State Property Fund said in October it would offer a 92.79% stake in Ukrtelecom for sale on December 28 at an initial price of about $1.3 billion.
The sale of Ukrtelecom has been repeatedly delayed in the last few years. Its initial public offering had been delayed due to political wrangling and infighting.
The company, which controls about 80 percent of Ukraine's fixed-line market and has a relatively small mobile business, earned $6.1 million in the first half of 2010, compared with a loss of $16 million in the same period of 2009.
MOSCOW, December 21 (RIA Novosti)
