Proxy adviser Institutional Shareholders Services said it recommends that VimpelCom shareholders oppose the Russian mobile operator's USD 6 billion acquisition of Wind Telecom. Given the corporate governance concerns, lackluster market reaction, and ambiguous economic gains, the proposed acquisition of Wind Telecom does not appear to be in the best interest of shareholders, ISS said. ISS recommended VimpelCom owners vote against an additional share issue, the final stage of the Wind acquisition, at the shareholders meeting on 17 March. Vimpelcom said in a statement that it believes ISS reached the wrong conclusion on the transaction, noting its three independent directors recommend support for the deal. Another proxy adviser, Glass, Lewis & Co, earlier recommended shareholders approve the equity issue, and Vimpelcom's management also supports the transaction. One of Vimeplcom's major shareholders, Telenor, has opposed the deal and is seeking arbitration to prevent the transaction.
