Russian Company Buys Kyrgyz Cell Operator from Kazakh Investors
RUSSIAN COMPANY BUYS KYRGYZ CELL OPERATOR FROM KAZAKH INVESTORS. RFE/RL NEWSLINE Vol. 9, No. 231, Part I, 13 December 2005 Russia's MobileTelesystems (MTS), the country's largest cellular operator, announced on 12 December that it has acquired a 51 percentstake in Kyrgyz cellular operator Bitel from Kazakhstan's AllianceCapital for $150 million, Reuters reported. MTS also acquired an option to buy out the rest of Bitel by the end of 2006. Alliance, which reports have linked to the family of former Kyrgyz PresidentAskar Akaev, has been embroiled in a conflict with Russia's AlfaGroup since Alliance acquired Bitel this spring. MTS CEO Vassilii Sidorov played down the risks of ongoing litigation, saying, "We would not do a deal if we were not certain we could eliminate those risks." Bitel is Kyrgyzstan's largest mobile operator, with nearly500,000 subscribers and an almost 90-percent market share. MTS estimates that by 2010 there will be 2-3 million cell phone users inKyrgyzstan, akipress.org reported. DK


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