Goldman Sachs Believes VimpelCom May Acquire 51% of Orascom, 100% of Wind Italy (VIP)
Goldman Sachs believes VimpelCom (NYSE: VIP) may buy a 51% stake in Orascom Telecom (Neutral, E£5.05) and 100% of Wind Italy. Goldman rates shares of VimpelCom a Buy.
In the report Goldman Sachs notes, "As Orascom is in dispute with the Algerian government over DJezzy, visibility over its value is very limited. As such, any transaction potentially involving it is almost impossible to assess. We would expect limited impact from this news on Orascom, assuming that if it were to occur it would most likely be structured as a straightforward acquisition of Weather (the owner of Orascom and Wind Italy) by VimpelCom.
We note that investors have had a negative view on potential M&A activity by VimpelCom. As such, the news may be negative for the stock from a sentiment point of view."
Shares of VimpelCom Ltd. closed yesterday at $16.81.
