Telenor wins in Geneva — MobileMonday Global: Industry News

^{Alfa limited to four members on VimpelCom board} Telenor wins in Geneva

1 Feb 2007 at 08:16 GMT Timo Poropudas

A Geneva arbitration tribunal has ruled that Alfa cannot nominate more than four candidates for election to the VimpelCom Board.

The tribunal has upheld the validity of the VimpelCom Shareholders Agreement, which Alfa violated in 2005 and 2006 by nominating more candidates for election to the VimpelCom Board than it was entitled to. The arbitration tribunal also upheld Telenor’s right under the Agreement to nominate five candidates for election the VimpelCom Board, Telenor says in a press release.

The tribunal’s interim award dated 25 January 2007 also establishes detailed procedures for the parties to follow in connection with the nomination of candidates for election to the VimpelCom Board at VimpelCom’s 2007 AGM.

The tribunal will maintain its jurisdiction over the nomination and election process through the 2007 AGM and issue a final award following the 2007 AGM.

“We are delighted with this outcome,” said Telenor spokesperson Dag Melgaard. “Our objective in bringing this arbitration has been to force Alfa to comply with the VimpelCom Shareholders Agreement. The tribunal has upheld the validity of the Agreement and crafted a remedy that provides the parties with guidance as to how the nomination process should be conducted and will ensure compliance with the tribunal’s award.”