VimpelCom’s plans to acquire Orascom-owner Weather Investment could be in jeopardy, following reports that the Russian-based group’s two main shareholders have raised concerns over the US$6.6 billion deal. According to a Financial Times report today, Alfa Group, Vimpelcom’s largest investor, has said it has not decided whether it will proceed with the deal if the Algiers government carries out its threat to nationalise Orascom’s Algerian mobile business, Djezzy. Meanwhile, VimpelCom’s other major shareholder – Norway’s Telenor – voiced concerns that the deal could provoke regulatory objections in Bangladesh and Pakistan, where both Telenor and Orascom have existing (and competing) mobile businesses. Telenor warned that if regulators did object in a particular country, the Weather deal could fall through, noting that an alternative could be for VimpelCom not to buy assets in countries where Telenor is already present.

VimpelCom announced last week it is to merge with Weather Investments – owner of Orascom Telecom and the WIND mobile brand – in a deal that has the potential to create the world’s fifth-largest mobile operator group. Weather is set to take a 20 percent economic interest (and an 18.5 percent voting interest) in the enlarged VimpelCom group, which means that Telenor and Alfa Group will see their economic shares in the firm diluted to 31.7 percent and 31.4 percent, respectively. As well as the ongoing issues in Algeria, there are also concerns at a group level that VimpelCom may be taking on too much debt to fund the deal. VimpelCom group’s net debt is set to rise from US$4 billion to US$24 billion if the transaction goes ahead, and credit rating agencies say they may downgrade VimpelCom as a result.