PRESS: Russia’s VimpelCom owner said to change brand by 2017

MOSCOW, Mar 11 (PRIME) -- Amsterdam-based VimpelCom Ltd., the sole owner of Russian mobile operator VimpelCom, will change its name until the end of 2016–early 2017 to distance itself from its unit, business daily Vedomosti reported Friday, citing several sources close to VimpelCom Ltd.

“There is much confusion during talks with investors; they would like to go away from the name,” a source said.

The second source said that the name is yet to be chosen, but it should reflect a new strategy oriented at the development of digital products. Brands of operating companies will be kept unchanged, the person said.

Another source close to the holding confirmed that local consumer brands will be maintained.

Raiffeisenbank analyst Sergei Libin said that VimpelCom Ltd. wants to change its name because of the Uzbek bribery scandal. Investors have poor memory and this goodwill trick can work.

UralSib Capital analyst Konstantin Belov explained VimpelCom Ltd.’s decision by corporate changes, including the sale of a unit in Algeria and the creation of a joint venture in Italy.

Gazprombank analyst Sergei Vasin attributed the rebranding idea to VimpelCom Ltd.’s focus on emerging markets.

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