Telenor has acquired additional shares in Vimpelcom, settling its dispute over dilution of its stake in the Russian operator after its acquisition of the former Orascom Telecom assets. Weather Investments, the holding company of Egyptian businessman Naguib Sawiris, sold Telenor 234 million VimpelCom preferred shares for USD 374.4 million, increasing Telenor's voting share in VimpelCom to 36.36 percent. Telenor's voting share in Vimpelcom had diluted to 25.0 percent after Sawiris sold the Orascom assets to Vimpelcom, while Weather became the largest shareholder in the Russian operator with a 29.6 percent voting stake. Telenor opposed the acquisition and took the company and other shareholders, including Altimo Holdings, to court over the matter. As a result of the new deal with Weather, Telenor is dropping the lawsuits and again becomes the largest shareholder in Vimpelcom. Weather's stake will drop to 18.3 percent and Altimo will have 25.0 percent of the votes. Telenor said it also agreed to work on expanding the VimpelCom Board to eleven members, allowing Weather continued influence. The withdrawal of its claims also will result in the termination of the VimpelCom shareholders agreement. Simultaneously with Telenor's purchase of VimpelCom preferred shares from Weather, Telenor and Weather have entered into certain put and call arrangements regarding the remaining 71 million preferred shares held by Weather.
