Telenor still opposed to URS WellCom acquisition

Press release
1 minute read
Telenor regrets the announcement made by VimpelCom today that the management of VimpelCom has consummated the purchase of Ukrainian Radio Systems (URS WellCom) for an aggregate purchase price of USD 231 million.

"This is regrettable but not unexpected," says Telenor's Chief Press Spokesman Dag Melgaard in a comment. "We had, however, anticipated that the management would comply with VimpelCom's charter and take the acquisition back to the Board for a final decision. Telenor maintains that the price quoted is far too high. In addition, entry into the Ukrainian market through a fourth operator with less than one per cent market share will require substantial investments jeopardizing VimpelCom's future value creation. We also still believe the management has consummated the transaction without the proper authorisation, and Telenor will therefore consider carefully what steps we need to take to defend VimpelCom's future value and VimpelCom's corporate governance. This might include legal steps," says Dag Melgaard.

Telenor still challenges the validity of that EGM as not being properly convened.

Further information

Dag Melgaard, Chief Press Spokesman of Telenor ASA, tel: (+47) 901 92 000