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MOSCOW, Aug 5 - The board of Russia's Sistema has approved the acquisition of a 51.91 percent stake in its fixed-line subsidiary Comstar by another subsidiary, mobile network Mobile TeleSystems, it said on Wednesday.
The $1.272 billion takeover would mirror MTS rival Vimpelcom's takeover last year of fixed line carrier Golden Telecom, also controlled by Vimpelcom's key shareholders. Sistema said the deal was contingent on MTS obtaining the required funding.MTS said it also plans to hedge the transaction, which will be carried out in roubles. Russian regulators have already approved the deal.
"The deal will allow us to strengthen our leadership position in the Russian telecommunications sector and realise the synergies in both companies," Sistema's chief executive, Leonid Melamed, said in a statement.