MTS Wants to Sell: France Telecom Among Potential Buyers

JSFC Sistema, which repeatedly declared the impossibility of selling a majority stake in telecommunications provider MTS (MTC in Russian), seems to have changed its mind. The Moscow-based company is reportedly negotiating a partnership with French telecommunications group France Telecom.

 

In exchange for a stake in MTS, Sistema will get a minority stake in a major international corporation, suggest experts, reports RBC daily.

 

“JSFC Sistema understands that MTS will not be able to show past rates of revenue growth. In addition, oil companies have appeared among Sistema’s assets which has significantly increased the company’s financial position. At the moment, we are considering the possibility of selling a majority stake or merging with any of the major international [telecommunications] providers,” a source told the paper.

 

France Telecom (which operates under the “Orange” brand) is interested in acquiring the company, but negotiations have led nowhere.

 

JSFC Sistema Chair Vladimir Evtushenkov said there have been no offers from France Telecom. He declined further comment. Requests for comments sent to the French company went unanswered.

 

Note, one of the 3 mobile communications providers in Armenia — VivaCell — belongs to MTS, while another, Orange, belongs to France Telecom.

 

Recall, former Armenian president Robert Kocharian is a currently a board member of JSFC Sistema and holds the position of Chair of the Investor Relations Committee.