for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

Russia Comstar offers $850 mln for Synterra-paper

MOSCOW, April 30 (Reuters) - Russian fixed-line operator Comstar CMSTq.L has offered to acquire telecom company Synterra for $850 million in equity and cash, including debt, business daily Kommersant reported on Thursday.

Kommersant said Comstar, part of services conglomerate Sistema SSAq.L, planned to use 11.062 percent of its own shares and about $250 million to fund the acquisition which would help its strengthen its position on the Internet market.

The paper said Synterra’s debt stood at 11 billion roubles as of the start of 2009, which amounts to about $330 million at current rates.

Comstar spokeswoman Yekaterina Nevskaya declined to comment on the report but said Comstar is considering various options to buy assets using 11.062 percent of its own shares.

Synterra declined to comment.

Synterra operates Russia's second-largest backbone network after Rostelecom ROS.NRTKM.MM. The main beneficiary owner of Synterra is Dmitry Ananyev, who also co-owns Promsvyazbank.

Russia’s No.3 mobile phone operator MegaFon is also interested in buying Synterra and is currently doing due diligence on the firm. ($1=33.24 ROUBLE) (Reporting by Maria Kiselyova; Editing by Hans Peters)

Breakingviews

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.


Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up