MTS Climbs After Announcing 2011 Dividends at 72% of Net Income
OAO Mobile TeleSystems (MBT), Russia’s largest mobile operator, gained the most in a month in U.S. trading after the company said its board recommended paying 72 percent of net income as dividends for last year.
American depositary receipts of MTS, as the company is known, rose 2.6 percent to $18.31, the most since March 13 on a closing basis, at 12:21 p.m. in New York. The stock has gained 25 percent this year after declining 30 percent in 2011.
“MTS has proved to be a reliable dividends payer and market had a positive reaction to the news,” Konstantin Chernyshev, head of research at UralSib Financial Corp in Moscow, said by phone.
MTS, as the company is known, said its board recommended paying a total of 30.4 billion rubles ($1 billion) in an e- mailed statement today. It may pay 14.71 rubles a share or $1.01 per American depositary receipt, the company said.
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