Mail.ru Planning $2Bln London Float

Internet firm Mail.ru is planning a $2 billion flotation in London this summer and is talking to Citibank, Goldman Sachs and Credit Suisse about the deal, Kommersant reported Wednesday.

The newspaper cited industry sources as saying Mail.ru, which last year had around 35 million users per month, wanted to proceed with an initial public offering ahead of competitor Yandex, the country's largest Internet firm.

Yandex plans to raise $1.5 billion to $2 billion in a New York IPO in the fall.

The newspaper also quoted industry experts as saying the valuation of Mail.ru at $2 billion was excessive and that the company could not be valued at more than $1 billion, given its estimated revenues of $40 million.

Kommersant listed among Mail.ru shareholders South African Naspers, as well as funds Digital Sky Technologies and Tiger Global Management.

No one at Mail.ru was immediately available to comment.