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Monday, January 31, 2011

Telenor seeks arbitration over Vimpelcom deal, (NYSE: VIP), (TEL), (ORTE)

Russia's Vimpelcom (VIP.N) has been hit by legal action from its Norwegian shareholder Telenor (TEL.OL) as the fight over its $6 billion deal for telecoms groups Wind and Orascom (ORTE.CA) looks destined for the courts. Vimpelcom, Russia's second biggest mobile phone group, said on Monday it had received a notice of arbitration from Telenor, which wants to enforce alleged pre-emptive rights on a share issue it believes it is owed as part of the deal. Reuters reported on Friday that Telenor was preparing possible legal action to block the bid, which is supported by fellow 40 percent shareholder Alfa Group, Vimpelcom's management and the Russian government. [ID:nLDE70R1L1] Vimpelcom said Telenor had also demanded the postponement of a March 17 shareholders' vote to approve the deal.

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