Operators' battle for Russian market behind the disagreement

Russian mobile operator MegaFon, of which TeliaSonera owns 44 percent, is the subject of an ownership dispute. The company's ownership questions will soon be discussed in court. The battle between mobile operators for the control of the rapidly growing Russian mobile market can be found behind the dispute. The disagreement concerns a holding of 25 percent in MegaFon. Investment company IPOC Capital Partners, which is registered in Bermuda, and Russian company Alfa are arguing over who holds this quarter in the operator. IPOC already owns 6.5 percent of MegaFon shares. According to representatives of IPOC, it purchased a quarter of MegaFon from the Russian investment bank LV Finance through an agreement that was signed in April 2001. IPOC head Roland Bopp stated at a press conference in London on Thursday that the last instalment of 16 million dollars was paid to LV Finance in July this year. At Russian company Alfa, the situation is viewed quite differently. Alfa announced in August that it has acquired LV Finance, and thus also acquired the holding of one quarter in MegaFon.