Vimpelcom may issue new preferred shares to public investors as well as to Naguib Sawiris’ Weather to gain support for its possible acquisition of the Egyptian tycoon’s assets, two sources told Reuters.
A source close to Vimpelcom’s board said its corporate governance committee had "generally agreed" on the idea of issuing preferred shares to public investors in the same proportion as preferred shares issued to Weather Investments, Sawiris’ holding company.
"This is one of the options under discussion…amid generally negative investor sentiment," another source familiar with Vimpelcom’s plans said.
Talk of the possible acquisition of Wind, Italy’s No.3 mobile operator, and 51 percent of Egyptian group Orascom Telecom, involving cash and shares, had earlier sparked a sharp sell-off in Vimpelcom shares.
