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. Last Updated: 07/27/2016

Telenor to See Kyivstar Accounts

OSLO -- Norway's Telenor has regained access to the financial results of its Ukrainian unit, lifting its shares Thursday on hopes the move would ease the reconsolidation of Kyivstar.

Telenor took Kyivstar off its books early this year, saying it no longer had sufficient control over its 56.5 percent-owned unit due to numerous courtroom and boardroom battles with estranged partner Altimo, which owns the rest.

That deconsolidation, also triggered by a court ban on access to Kyivstar's financial results, hit Telenor's stock and entrenched its battle against Altimo, the telecoms arm of Alfa Group.

Shares in Telenor, whose main business is running its mobile units across Europe and Asia, rose 3.8 percent to 136 crowns in afternoon trading, against a flat DJ Stoxx telecoms index.

"It's clearly a very, very significant move in the right direction," said Espen Torgersen, analyst at Carnegie in Oslo. "The visibility has increased, therefore the risk premium has gone down. You also get the full contribution in the EPS."

In a purely accounting move, Telenor will now count its share of Kyivstar profits as its own, instead of adding it lower down in its accounts, a cosmetic change seen boosting its 2007 EPS by some 20 percent, bank Dresdner Kleinwort said.

Telenor vice president Jan Edvard Thygesen said the group was "delighted" by the decision, which came in response to a termination of an injunction by a Ukrainian court on Nov. 23.

Telenor said it was still unable to consolidate Kyivstar's results because of "Alfa Group's continuing collusive litigation in Ukraine and its ongoing boycott of Kyivstar's board and shareholder meetings in defiance of an international arbitration award and two court orders."