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MegaFon to Pay $5.15 Billion in Dividends, Pursue London IPO

OAO MegaFon, Russia’s second-largest mobile-phone operator, will pay owners TeliaSonera AB, AF Telecom and Altimo $5.15 billion in dividends and pursue an initial public offering in London, ending a governance dispute.

Russian billionaire Alisher Usmanov’s AF Telecom will get majority control of MegaFon, buying part of TeliaSonera’s stake and Altimo’s entire shareholding, Stockholm-based TeliaSonera said today. The shareholders have agreed to sell as much as 20 percent of MegaFon in an IPO on the London stock exchange “as soon as practically possible,” TeliaSonera said.