OREANDA-NEWS. On March 6, 2007 Mobile TeleSystems, the largest mobile phone operator in Russia and the CIS, announces its decision to write off costs associated with the acquisition of a 51% stake in Tarino Limited, indirect owner of Bitel LLP (Bitel), a kyrgyz gsm mobile phone operator, at the end of 2005 in the amount of $150 million.

However, MTS has brought damage claims in the High Court of Justice in the Isle of Man seeking damages for the misappropriation and forced seizure of Bitel and its assets against a number of companies, including Bitel LLC, Fellowes International Holdings Limited, Altimo Holdings and Investments Limited, Altimo LLC, CJSC Reservspetzmet, Lovianco Trading Co Limited, Yuridicheskoe Bureau Pravo, Energia Light LLC, KI-Credit Prive SA JSC, AK Investment Limited CJSC, Sky Mobile LLC.

In the damage claims MTS states that Bitel's shares were repeatedly sold and reregistered in the names of purportedly independent companies over the past 16 months. These companies will likely assert that they are good faith purchasers, even if this is not the case. It has also become apparent that Bitel's assets were purportedly sold and transferred to Sky Mobile LLC, another Kyrgyz mobile phone operator. MTS reserves the right to institute legal proceedings against additional parties should further attempts of selling Bitel's shares or assets are made.