UPDATE- A1 Mulling Suit against Tele2 Russia Board

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It is now truly a dogfight. In a statement, A1 investment group is now contemplating taking legal action in defending its right to purchase Tele2 Russia. Last Wednesday, Tele2 agreed to sell the unit to the state-controlled bank despite the standing offer from billionaire Mikhail Fridman's investment arm.

The deal between VTB and Tele2 amounted to US$3.5 billion was followed by an offer between US$3.6 billion to US$4 billion from A1. VTB has claimed that its agreement is legally binding.

A1 claims the suit would seek reparation of lost opportunities and failure to perform fiduciary duties with the respondents being the board of Tele2 who had agreed to the VTB deal together with Morgan Stanley as management and financial advisor to the company.

Dmitry Vozianov, Managing Director of A1 had told Reuters, "Our lawyers are working on considering filing a legal case. Minority shareholders have a different action - they will have an action for the loss incurred. We are in talks with them but it is confidential."

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Mikhail Fridman

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