Russia's MegaFon eyes 5 pct Vimpelcom stake -paper

MOSCOW, July 3 (Reuters) - MegaFon, Russia's No.3 mobile phone operator, may buy up to 5 percent of shares in rival Vimpelcom (VIP.N) on the open market, Kommersant business daily reported on Friday.

The newspaper quoted two sources close to shareholders of both operators as saying the proposal was on the agenda of MegaFon's board meeting on July 1 but no decision was made.

MegaFon declined to comment.

The sources declined to specify whether MegaFon could purchase stock out of Norwegian Telenor's (TEL.OL) 26.6 percent voting stake that may soon be sold by Russian bailiffs to cover a $1.7 billion award in a Siberian court case. [nLJ385090]

Telenor, which is contesting the court ruling, is embroiled in a protracted dispute with Russian billionaire Mikhail Fridman's Alfa Group, co-owner of Vimpelcom with a 44 percent stake.

The latter has denied any link to Farimex, a tiny Vimpelcom shareholder behind the suit, but analysts believe the fine is a manoeuvre linked to high-stakes talks between the two companies.

Alfa Group has 25.1 percent of MegaFon shares, while Sweden's TeliaSonera (TLS1V.HE) (TLSN.ST) holds 43.8 percent.

(Reporting by Maria Kiselyova; editing by John Stonestreet)

((maria.kiselyova@reuters.com, +7 495 775 12 42, Reuters Messaging: maria.kiselyova.reuters.com@reuters.net)) Keywords: VIMPELCOM/MEGAFON

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