Report: VimpelCom to Buy Golden
Russian carrier VimpelCom Ltd. (NYSE: VIP) will be buying Golden Telecom Inc. in a deal to be announced Friday, the Wall Street Journal is reporting this evening.
Citing an anonymous source, the Journal says the deal is worth $4.3 billion, or $105 per share.
Golden shares closed at $100.06 on Nasdaq today and shot up to $110 in after-hours trading.
VimpelCom shares were down 23 cents (0.6%) at $39.15 after hours.
Speculation of a deal has been rumbling lately, spurred by word of VimpelCom closing a $4.5 billion loan. (See Top Ten: Emerging Markets Carriers.) The Journal notes that earlier this month, the companies admitted to being in talks.
VimpelCom has been reporting healthy profits of late, as has Golden. Moreover, Golden has been beefing up through acquisitions since last year. (See Rakin' In the Roubles, Golden Buys Again, Golden Closes Fortland Buy, and Golden Closes Corbina Buy.)
— Craig Matsumoto, West Coast Editor, Light Reading