VimpelCom Rises as Algeria Denies Djezzy Bid Purchase Price
VimpelCom Ltd. (VIP), Russia’s third- biggest mobile carrier by subscribers, rose as Algeria’s Finance Minister denied the government has agreed to pay $6.5 billion for a controlling stake in the company’s Djezzy unit.
American depositary receipts of VimpelCom added 0.5 percent to $11.26 in New York, after dropping as much as 2.1 percent earlier. Volume totaled 2.7 million, or 135 percent of the average three-month trading activity for the shares, according to data compiled by Bloomberg. The stock has gained 19 percent this quarter.
Algeria is in talks to buy a stake in Djezzy from VimpelCom, which merged with Orascom last year. It is still discussing a purchase price for the 51 percent stake, Finance Minister Karim Djoudi said in an interview today. Orascom said yesterday an Algerian court fined Djezzy about $1.3 billion for violating foreign-exchange regulations, a ruling the company is planning to appeal. Djoudi said today that the fine would be factored in during the negotiations.
Reuters reported yesterday Algeria had agreed to pay $6.5 billion for a controlling stake.
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