MTS eyes Comstar acquisition

By Chris Dziadul

The leading Russian mobile operator MTS looks set to buy a 51% stake in the MSO Comstar.

Kommersant reports that it will pay $1.275 billion (0.907 billion) for the transaction, equivalent to $5.98 a share.

This is the figure recommended by Bank of America Securities Merrill Lynch and reportedly 19.6% more than the value of Comstar shares listed on the LSE yesterday (July 30).

Both MTS and Comstar, whose interests include the pay-TV operation Stream TV, are ultimately controlled by Sistema.