Russian cellco MegaFon completes Synterra buyout
www.WirelessFederation.com/news: In a move to speed up expansion of broadband business, the USD710 million buyout of wireless broadband operator Synterra has been completed by Russian cellco MegaFon.
Federal Anti-monopoly Service (FAS) gave clearance to MegaFon at the end of July 2009 to buy 100% of Synterra’s shares. On February 25, 2010, cellco’s board met to approve the acquisition of the telco. According to Sergei Soldatenkov, MegaFon’s director general, Synterra is very important for the company for its backbone network and corporate clients.
Synterra operates the second largest backbone network in Russia and also owns a controlling stake in a number of wireline operators, such as St Petersburg-based PeterStar.
Helsinki shares close higher led by Nokia, energy stocks dip UPDATE
HELSINKI (AFX) – Helsinki shares closed higher led by Nokia and reversing earlier lows, while Neste Oil and Fortum ended lower amid ongoing concerns about the increased costs the utility is facing as it ups reliance on thermal power following shortfalls from other sources, dealers said.
At 6.30 pm, the OMX Helsinki 25 closed 0.42 pct firmer at 2,560.86 points and the OMX Helsinki was up 0.63 pct at 8,664.61 points, with volume at 1.120 bln eur.
The OMX Helsinki CAP portfolio ended 0.33 pct firmer at 4,731.35 points and the HEX Tech index was up 1.44 pct at 1,067.13 points.
Nokia closed up 1.69 pct to 15.02 eur, pulling back from earlier lows as investors continued to express mixed views about the recent newsflow surrounding the mobile phone market.
US brokerage Citigroup today lifted its earnings forecasts for Nokia as part of a telecom equipment review, saying the widespread pessimism in the sector is unjustified.
Nokia meanwhile has unveiled its new 6288 handset, a sliding model that can play video clips and which will sell for about 325 eur excluding VAT and subsidies. The phone starts shipping this month.
Fortum ended down 1.06 pct to 20.58.
FIM Securities said it is cutting its full-year earnings estimates for the group to account for what it estimates will be an extra 100 mln eur outlay in the second half to increase thermal output.
That is needed to compensate for reduced nuclear output following the shut-downs in Sweden and the dry Finnish summer, which has cut hydro capacity, FIM’s Olli Kahkonen said.
Kahkonen repeated his ‘reduce’ stance on the stock, with a target of 18-19 eur.
Neste Oil was off 2.73 pct to 22.47 eur.
Among telecoms, TeliaSonera was up 1.80 pct to 5.10 eur and Elisa was 1.99 pct higher at 16.90 eur.
In construction, YIT gained 1.58 pct to 17.39 eur after the group revealed that it has acquired two plots in St Petersburg with the rights to build blocks of flats there for 35 mln eur.
Industrials closed lower, with Metso down 0.38 pct to 28.52 eur.
Metso said its Paper unit has signed a contract to supply China’s Fujian Hengan with a second Advantage DCT 200 tissue production line for about 20 mln eur.
Wartsila B down 0.34 pct to 32.05 eur.
Wartsila said its BioPower unit is teaming up with the UK’s Helius Energy to identify possible sites for new power and heat plants, with Helius Energy conducting the market research, obtaining the relevant permits and arranging financing, and Wartsila designing and delivering the plants.
The two firms have already identified 13 projects they wish to take forward.
Outokumpu was 1.39 pct weaker at 19.13 eur and Rautaruukki K was 0.90 pct off at 22.05 eur
Kemira, which has strengthened its water treatment operations by buying four subsidiaries of Denmark’s Parcon, was up 0.79 pct to 14.11 eur.
Among paper shares, UPM-Kymmene was little changed — down 0.05 pct to 18.84 eur, Stora Enso R added 1.23 pct to 12.30 eur and M-Real B was 1.02 pct higher at 3.95 eur.
Of the leading banks Sampo A was down 0.13 at 15.90 eur.
Dealers said in the absence of stock-moving newsflow, Sampo is likely to hover around 15.95 eur, given that Goldman Sachs is thought to have put a sell order on 10 mln shares at that price.
Nordea added 1.94 pct to 10.50 eur and OKO A ended 0.25 pct firmer at 12.26 eur.
Source- http://www.forbes.com
