Rostelecom Eyes Handset Retail, But A Euroset Stake Would Prove Complicated

According to local press reports, state-backed telecoms operator Rostelecom is considering a stake in mobile and consumer electronics retailer Euroset. Alexander Mamut, who owns a 50.1% stake in the retailer, is reportedly looking to sell a 25% stake. However, the deal is complicated by mobile operator VimpelCom's 49.9% holding in the retailer, and its option to purchase a further 25% stake that expires on January 23 2012. BMI forecasts strong growth in consumer electronics retail in Russia, underpinned by macroeconomic trends and consumer behaviour. Operators will also benefit from investment in retail via improved distribution for its core telecoms products. However, co-ownership with VimpelCom would reduce these benefits, making an alternative consumer electronics acquisition of greater value to Rostelecom, CFW believes.

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