Telenor ASA said it denies claims by Alfa Group that the two companies have been negotiating a merger of VimpelCom and Kyivstar.

Telenor, with 56.5 pct, and Alfa Group, 43.5 pct, currently own the Ukraine mobile operator Kyivstar, while Telenor owns 29.9 pct of VimpelCom with Alfa Group's stake of Russia's number two mobile operator at 24.5 pct. Telenor denied claims by Alfa Group's Alfa Telecom unit's shareholders, taking part in a conference call, that it had demanded a controlling interest in a merged VimpleCom/Kyivstar. Telenor said no such merger negotiations have taken place.

It also denied claims that Telenor had proposed to Alfa Telecom that the two companies buy another Ukrainian operator - WellCom - as well as claims that Telenor had a conflict of interest in its potential acquisition. 'This is not true. If this acquisition would create value for VimpelCom, (then) Telenor, as VimpelCom's largest shareholder, would obviously support it,' said Telenor spokesman Dag Melgaard. For several months Alfa and Telenor have fought over the future of VimpelCom and a proposed acquisition of WellCom, a move that Telenor opposes.

© Bente Bjorndal, "AFX News Limited, Forbes"