History
In June 2005, a new management team led by Alexey Reznikovich developed a new strategy and vision for the company. This new vision was to look for investments outside the borders of the former Soviet Union and to become recognised as a leading emerging markets telecoms investor. A first step in this strategy, in November 2005, was the acquisition of a 13.2% stake in Turkcell, the largest Turkish mobile phone operator. At that time, the deal was the biggest cross-border purchase by a Russian company. This acquisition was the subject of considerable controversy at the time of execution since there was doubt whether the Turkish Group Cukurova was in violation of a shareholders agreement it had in place with TeliaSonera, the other major shareholder in Turkcell. Altimo was also engaged in a dispute with TeliaSonera over MegaFon at the time of this transaction. Other overseas investments have also enjoyed questionable success. Its recent efforts to expand into India met with a rebuff when the home ministry observed that Altimo and its parent company, Alpha, have a "tainted background".
Altimo has a track record of enhancing the performance of the companies in which it invests, such as the performance of VimpelCom, whose operating income before depreciation and amortisation tripled from 2004 to 2007.
The total market capitalization of Altimo's assets reached a high of over $30 billion, although this value had declined to somewhat less than $10 billion by December 2009. Together, Altimo's investee companies have more than 150 million mobile phone subscribers.
Altimo portrays itself as an example of Russia's emerging "new multinationals": more western-focused, open and transparent, with sound corporate governance and effective corporate management. However its actions suggest otherwise, as shown by the 19 November 2008 decision by the United States District Court, Southern District of New York which found them in contempt of court in their dispute with Telenor over the govnance of Kyivstar. Today, Altimo is prominent in the telecom markets of Eurasia, with its investee companies operating in Russia, Ukraine, Kazakhstan, Uzbekistan, Kyrgyzstan, Tadjikistan, Georgia and Turkey.
One of Altimo's stated aims is to participate in the globalisation and consolidation of telecom business by partnering with one of major Western telecom operators,however despite a number of public announcements there is little sign of this aim coming to fruition.
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