[October 21, 2009] Russian Sistema may merge Indian ops with MTS Tweet (M&A Navigator Via Acquire Media NewsEdge) Russian conglomerate AFK Sistema (MCX:AFKC) could combine its Indian telecomms business Sistema Shyam TeleServices with Russia's major cell phone operator MTS (RTD:MTSS), its main asset, Reuters said on Wednesday, citing analysts. Sistema controls 73.7% in Shyam, which owns a licence and spectrum to supply mobile phone services in 22 Indian circles. It has two million fixed-line and mobile clients in seven Indian circles now. US JPMorgan (NYSE:JPM) quoted Vladimir Yevtushenkov, Sistema's chairman, as saying on Tueday that a tie-up between MTS and Shyam is possible and a year from now would be a good time for the transaction. Russian Alpha-Bank analysts said today that MTS'c CEO Mikhail Shamolin confirmed the company's interest in the Indian market where Shyam operates under the MTS brand, adding that a possible merger will be decided by MTS when and if the Indian company would improve its financial performance. Sistema said the decision belongs to MTS and there was no calendar for the merger. Yelena Kokhanovskaya, spokeswoman for MTS said the company will have to make up its mind whether it would buy Shyam. Sector: Telecommunications Type: Merger Status: Auction Comment: Sistema may merge its Indian unit with MTS ((Comments on this story may be sent to [email protected])) (c) 2009 M2 COMMUNICATIONS [ Back To TMCnet.com's Homepage ]