Russian cable deal hits snag

14.04 Europe/London, October 3, 2011 By Chris Dziadul

The sale of the Russian cable operator Akado to MegaFon appears to have hit yet another obstacle, with the latter’s board failing to approve the deal.

Kommersant reports that a vote on the matter is now likely to take place in the next few days.
By acquiring Akado, MegaFon would become the leading provider of broadband services in Moscow, with a market share of 30.9%, ahead of both MTS (27.7%) and Vimpelcom (20.1%).
At present it is in fourth place with a 10% share through the ISP NetByNet, which it bought this summer.
In Russia as a whole, MegaFon would become the fifth leading provider of broadband service and fifth largest pay-TV operator, with market shares of 3.8% and 5% respectively, should it buy Akado.