Russian billionaire tycoon Mikhail Fridman is ready to outbid VTB banks offer to purchase Tele2's Russian subsidiary. Aside from the Russian unit, Fridman's group is contemplating on purchasing the Nordic telecommunications group.
The investment partnership group of Fridman, A1 said it was ready to make a cash offer of between US$3 billion to US$4.6 billion for Tele2. This would top the VTB bid of an enterprise value of US$3.5 billion, which is equity plus debt.
In a statement, A1 raised the prospects of a first time head to head battle between Fridman, who is flush with cash from the TNK-BP transaction against Russia's second largest bank.
According to an A1 spokesperson, "The price offered by VTB is below market and we're prepared to increase it." A1 did not elaborate on how much it is prepared to shell out for Tele2, which according to trading day results had an enterprise value of US$7.5 billion.
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