The long standing dispute between Nordic operator Telenor and Russian conglomerate Altimo (Alfa) could soon be at an end.

The two companies have reportedly agreed that VimpelCom, Russia’s second biggest cellco, could use a mixture of cash and equity to acquire leading Ukrainian operator, Kyivstar.

The two companies have been at loggerheads since Altimo encouraged VimpelCom to acquire another cellco, Ukrainian Radio Systems (URS) in November last year. Telenor maintains URS is a bad investment and causes the Nordic operator a conflict of interest.

Telenor owns 29.9 per cent of VimpelCom and 56.5 per cent of Kyivstar while Altimo owns 32.9 per cent of VimpelCom and 43.5 per cent of Kyivstar.

VimpelCom could spend as much as $5bn on the acquisition of Kyivstar. In February, Altimo proposed the Russian operator make the purchase for $5bn (ВЈ2.67bn) of VimpelCom’s own shares, but Telenor rejected the proposal, instead favouring an all cash bid.

The two companies now appear to be close to reaching a compromise on the structure of the purchase.

However, Telenor also wants a mechanism to be created whereby one of the two VimpelCom shareholders can buy out the other.

Discussions about the terms of the “market separation mechanism” are understood to be continuing.

New reports are emerging that China Mobile is in place to buy Millicom International Cellular (MIC), after South African operator MTN yesterday announced a surprise agreement to acquire Dubai based telecoms investor Investcom for $5.53bn (ВЈ3bn).

As a result of the agreement MTN’s subscriber base would increase to 28.1 million across 21 countries, making it the second biggest mobile operator in the region, behind Egypt’s Orascom Telecom.

Investcom also said it had withdrawn its offer to buy MIC, which has been on sale since January. The news will come as a blow to MIC, with reports indicating Investcom had tabled a leading $5bn offer for the company.

Other bidders in the running for MIC are believed to have placed offers well under $5bn, and China Mobile has been named as a bidding party once again, despite denying interest.

Late last month, the leading Chinese operator denied that it, or its parent, had made a bid for MIC.

Other interested parties are thought to be Egypt’s Orascom, Kuwait’s MTC, Norway’s Telenor and Mexico’s America Movil.

Leading Chinese operator, China Mobile, on Thursday rebuked reports that it has tabled a $4bn (ВЈ2.2bn) bid for Millicom International Cellular (MIC).

The buzz was generated by a report in the Financial Times on Wednesday, which put China Mobile in the frame but did not name sources.

The deadline for the second round of bids for Millicom is expected to expire in the next few days, after the company’s call for acquisition offers in January.

The most likely bidders in the second round are thought to be Egypt’s Orascom, Dubai’s Investcom, Kuwait’s MTC, Norway’s Telenor and Mexico’s America Movil. Vodafone is believed to have lost interest in Millicom.

The China Mobile spokesman did confirm that the operator is looking to acquire assets in emerging markets.

Millicom has operations in Southeast and south Asia, Central America, South America and Africa.