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UPDATE 2-Russian court postpones Telenor hearing

Published 07/21/2009, 09:33 AM
TEL
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* Norwegian telco seeks to halt Vimpelcom stake transfer

* Decision delayed until July 28

* Separate Telenor appeal to be heard on Aug. 6

(Adds further detail)

By Maria Kiselyova

MOSCOW, July 21 (Reuters) - A Moscow court adjourned until July 28 a hearing scheduled for Tuesday over a lawsuit from Telenor that seeks to block moves by Russian bailiffs to sell the Norwegian telecoms group's stake in Vimpelcom.

Analysts watching the case say a forced sale of Telenor's stake in Russia's second-biggest mobile company would further undermine confidence in the rule of law in Russia and dampen investor sentiment.

Bailiffs issued an order last month to auction the shares and the Federal State Property Agency was entrusted with organising the sale.

Bailiffs plan to sell the stake to cover a $1.7 billion award by a Siberian court, which had ordered the Norwegian group to pay the amount to Vimpelcom after Farimex, a tiny Vimpelcom shareholder, claimed Telenor had held back Vimpelcom's expansion in Ukraine.

Telenor is contesting this ruling, which it views as part of a protracted dispute with the powerful conglomerate of Russian billionaire Mikhail Fridman's Alfa Group, though Alfa has denied links to Farimex.

"Telenor's formal and legal position has not changed. We will use every opportunity to stop this (sale) until a final decision has been reached (by the court system)," Telenor spokesman Paal Kvalheim said.

Telenor was seeking to halt the transfer of its shares in Vimpelcom to the Federal State Property Agency. Its motion for a stay of execution of the transfer was denied on July 7.

Andrey Chadov, the judge, said Tuesday's hearing on the motion was delayed because Farimex has not been properly notified. Farimex's lawyers did not appear in court.

Telenor's separate appeal against the fine is due to be heard by another court in Siberia on Sept. 30, but bailiffs have said the hearing of the appeal would not halt enforcement or stop them from selling the stake.

On Aug. 6, the Ninth Moscow Arbitration Court of Appeal will hear Telenor's appeal against a June 3 decision by the Moscow Arbitration Court which denied Telenor's request to stay enforcement of the award, a Telenor lawyer said.

(Additional reporting by Aasa Christine Stoltz in Oslo; Writing by Maria Kiselyova and Dmitry Zhdannikov; editing by John Stonestreet)

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