UPDATE 1-MTS, Comstar boards approve merger, shares up

June 26, 2010 By Leave a Comment

MOSCOW, June 25 (Reuters) – The boards of Russia’s top mobile operator MTS (MBT.N) and its Comstar (CMSTq.L) fixed line unit on Friday recommended a merger between the two in an up to $1.03 billion bid to cut costs and offer more services.

MTS, which currently holds 62 percent in Comstar, has offered to buy another 9 percent from minority shareholders at 220 roubles ($7.08) per share, implying an 8 percent premium from Thursday’s close of $6.55 in the London-listed GDRs.

Those who do not take up the offer will then be able to swap each of their shares in Comstar for 0.825 of a shares in MTS, the two companies said in a joint statement.

Shares in MTS (MTSI.MM) were up 2.3 percent at 241.94 roubles and shares in Comstar (CMST.MM) were up 2 percent by 0800 GMT, outperforming a flat broad market index MICEX .

The deal — which will create the largest integrated telecommunications provider in Russia and the CIS — is expected to be completed in the second quarter of 2011.

The parameters were in line with figures reported earlier by Kommersant business daily. [ID:nLDE65O03J]

Any MTS or Comstar shareholders who vote against the deal will be able to sell their shares back to the company concerned, at 245.19 and 212.85 roubles respectively, as per Russian law.

“In the event of full election of the cash alternatives, through the VTO and the sale of shares back to Comstar, the implied transaction value could be up to $1,030 million,” the statement said.

“The merger will enable the full integration of the Comstar and MTS customer bases and the provision of bundled service offerings across Russia, which we believe will further enhance our combined competitive position,” MTS Chief Executive Mikhail Shamolin said in a statement.

“In particular, the merger is expected to streamline common business processes and further optimise operating and capital expenditure.”

Analysts at Troika reiterated their “buy” recommendation on both stocks, saying the deal would be “value accretive”. (Reporting by Dmitry Sergeyev and Toni Vorobyova; Editing by David Holmes) ($1=31.06 Rouble)

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Russia MTS to buy out Comstar minorities at premium

June 26, 2010 By Leave a Comment

June 25 (Reuters) – MTS (MBT.N), Russia’s No.1 mobile phone operator has offered to buy out minorities in Comstar (CMSTq.L), at a premium to the market, Kommersant business daily reported on Friday.

By persuading more minorities to part with stakes through offering a higher price, MTS should be able to buy more shares and will have to swap less of its own stock for Comstar’s in order to complete the acquisition. Thus MTS’s parent AFK Sistema (SSAq.L) should be able to keep control of the end company.

MTS may spend 8.3 billion roubles ($268 million) buying out minorities in its fixed line unit at 220 roubles per share, Kommersant said citing sources familiar with the deal.

The shares at Comstar closed at $6.55 per GDR, which is equal to one share, on Thursday, implying the buyout price of 220 roubles ($7.10) offers an 8.4 percent premium.

If the minor shareholders agree to sell more than 9 percent in Comstar MTS would buy the excess shares at 213 roubles per share, Kommersant said.

The merger would enable MTS to take full advantage of the synergies from its 2009 acquisition of a controlling stake in Comstar, in which it now holds 62 percent.

Shareholders who do not take up the buyout offer would swap one share in Comstar for 0.825 shares in MTS, Kommersant said.

(Reporting by Dmitry Sergeyev; Editing by Mike Nesbit)

($1=30.98 roubles)

((dmitry.sergeev@reuters.com; +7 495 775 1242;

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Arjun tanks ready for comparative trials with Russian T-90

May 25, 2009 By Leave a Comment

New Delhi, May 25 (ANI): With the delivery of 16 indigenously built Arjun main battle tank (MBT) to the Indian Army today, the combat vehicle is now ready for comparative trials with Russian T-90 tanks.

The Defence Research and Development Organisation handed sixteen tanks (cumulative 45 Arjun tanks) to Lt. Gen. D. Bhardwaj, Director General Mechanised Force (DGMF), for formation of the first Arjun regiment at a function in Avadi today.

“The regiment of 45 tanks will be subjected to a conversion training and field practice for a period of three months. Thereafter, the Army is planning to conduct a comparative trial with T 90 tanks in October or November 2009 to assess the operational deployment role of the tanks. The present batch of 124 tanks will be delivered by March 2010,” a Defence Ministry official told ANI.

The trials could deliver the final verdict on the combat vehicle, which took 35 years of research in self-reliance by dedicated Indian scientists against all odds, costing over Rs. 300 crore.

The DRDO has been demanding for the comparative trials of Arjun with T-90 tanks, which is being seen as an effort to meet criticism against the indigenous combat vehicle. Around 500 tanks would need to be manufactured to make the project successful.

The Army has made it clear that it will buy no more than the 124 Arjuns tanks that it has contracted for because it is unhappy with the tank on various counts.

“The Army cleared the acquisition of Arjun tanks after it carried out the Accelerated Usage Cum Reliability Trials (AUCRT) in five phases on two tanks from November 2007 to August 2008 covering more than 8000 km and 800 rounds of firing in each tank,” the official said.

AUCRT is required for assessing the spares requirement for the entire life of the tank besides evaluation of reliability of tank.

The DRDO’s Avadi-based Combat Vehicles Research and Development Establishment (CVRDE) will manufacture a total of 124 Arjun MBTs at a cost of Rs. 1,760 crores. Of the total 124, CVRDE had already delivered 29 MBTs in two instalments till March this year.

Arjun tank was meant to supplement and eventually replace the Soviet-era T-72 MBT and was originally meant to be a 40-tonne tank with a 105 mm gun. It has now grown to a 50-tonne tank with a 120 mm gun.

Arjun tanks can fire at a range of 3-4 km and have great mobility and are equipped with high protection facility. (ANI)

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Yorkshire lasses are Britain’s Bustiest Babes

May 14, 2009 By Leave a Comment

London, May 14 (ANI): A new survey has revealed that girls from Yorkshire are the bustiest babes in Britain, with 35 per cent needing DD cups or larger.

The study, conducted by MBT, who makes footwear for those with posture problems, revealed that girls from Newcastle were next, with the lasses from Bristol not lagging far behind, reports the Sun.

But London’s women were nowhere near the competition, after the survey revealed they had the smallest boobs in the country, with only 21 per cent a DD size or more.

It was also revealed that many of the big girls viewed their assets differently, with four in ten saying they make it harder to find a fella, while two thirds reckon they cannot keep fit.

Ten per cent say they are too embarrassed to dance or chat to men, and 22 per cent have at least considered breast reduction surgery.

The survey was conducted on one thousand women, and the results, showing percentage in each city with DD cup size or above, were as follows:

Leeds/Sheffield 35; Newcastle 35; Leicester 31; Bristol 30; Birmingham 29; Belfast 29; Glasgow 28; Cardiff 26; Brighton 26; Norwich 24; Manchester 22; London 21. (ANI)

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Women find men who walk tall and straight most attractive

February 18, 2009 By Leave a Comment

London, Feb 18 (ANI): Forget bling-bling or branded clothes, the ladies are drawn to men who walk tall, with their back straight and bottom tucked in.

That’s the conclusion of a new survey of 1,000 women by shoemakers MBT, who make posture-correcting footwear.

The ‘groundbreaking’ study found that females find slouched shoulders and slumped posture of celebrities a big turn-off, reports the Daily Express.

The study showed 94 per cent of women found “knuckle-draggers” like Oasis singer Gallagher unattractive.

Other sure-fire turn-offs were eyeliner and skinny jeans- and being overweight.

A third of woman said modern men are just not tall enough and 23 per cent think they are too effeminate. (ANI)

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