OREANDA-NEWS. February 08, 2010. Svyazinvest issued a statement confirming that the method of valuation for the regional telecoms and Rostelekom will be based on discounted cash flows and consolidated Russian accounting (i.e. subsidiaries will be included in the values), reported the press-centre of OTKRITIE Financial Corporation.

View: The statement did not offer any insight into the ultimate swap ratios, and thus can be taken as neutral.  As we had expected, Regional Telecoms corrected slightly on Wednesday after big earlier in the week. 

Valuation: RTOs trade on a 2010 EV/EBITDA of  3.8-4.5x, while Rostelecom trades at 8x.