Bidding has closed for the acquisition of Utel, the mobile wing of major fixed-line Ukrainian operator Ukrtelecom, Russian business daily Kommersant reported on Friday. The company’s market share amounts to just 2%, but it is the only Ukrainian mobile operator to hold a 3G UMTS license.
The bidders are Russian operators VimpelCom and MTS, Turkcell subsidiary Astelit, and – unexpectedly – Russian national telecom operator Rostelecom, an unnamed source told Kommersant.
Kommersant expressed doubts that Rostelecom could easily develop a 3G business in the absence of any preexisting mobile activity in Ukraine – in contrast with the three other bidders who already occupy large shares of the country’s GSM market.
Utel was put on the block at the annual general meeting of Ukrtelecom in June. The owner hopes to close the sale before the end of the year, but experts interviewed by Kommersant think the transaction could more take time due to the relatively high Utel asking price – from $250 million to $500 million – and because of reported internal dissension between the company’s owner and current management.
Update October 25, 2011
During informal remarks given today at the ITU Telecom World 2011 forum in Geneva, Rostelecom president Alexander Provorotov denied any interest in Utel.
