DST hires banks for IPO in 2011 - report

Russian internet company Digital Sky Technologies has hired investment banks to organize an initial public offering in 2011, a person familiar with the plans told the Wall Street Journal. DST chose Goldman Sachs, which has a stake in the company, and two other investment banks for an IPO on a global stock exchange, most likely in London, the paper reports. In the offering, DST investors may sell stakes and the company may also issue new shares. The exact timing and the target market valuation are unknown. DST, which is valued at about USD 4 billion, owns Russian internet portal Mail.ru and is buying the ICQ instant-messaging system. DST's affiliated international investment vehicle, DST Global, has also invested in Facebook, gaming company Zynga and other internet firms. A spokesman for DST said that "an IPO was always in DST's strategic agenda" but that "no details or timetable of the possible transaction have been agreed upon."