Kurs_anglyskogo_yazyka_dlya_finansistov
.pdfrather than Moscow?
EVP: Why not? The most successful exchange will be created by the people who have the best strategic approach and the most flexibility.
Cor.: Resistance to change is part of the human condition, and Wall Street is no different, is it?
EVP: Yes, a good example is the advent of financial futures, which Wall Street initially opposed but Chicago embraced. Today, the synergy between the Chicago derivative markets and the New York Stock Exchange (NYSE) is a significant contributor to the strength of the US financial system. But the most dramatic evidence can be seen from the ending of fixed commissions for brokers in 1975. Average trading volume that year was under 20 million shares per day. Today, the average daily volume is 430 million shares per day.
Cor.: Many believe that the primacy of the New York Stock Exchange is due not only to the accident of its location, but also to an accident of history.
EVP: Yes, undoubtedly. NYSE is an auction/agency market, the most economically efficient for trading stocks because customers can trade with each other directly.
Cor.: Is NYSE involved in politics?
EVP.: In our Statement of Buiness Conduct and Ethics, we have a rule that no funds or assets of the Exchange can be contributed to any political party or organization, or to any candidate for public office. Our business is securities, not politics.
Words you may need:
antithesis n полная противоположность millennium n тысячелетие
surpass v превосходить advent n приход, появление
financial futures финансовые фьючерсы
synergy n синергия, бóльшая эффективность в результате слияния derivative market рынок производных ценных бумаг
primacy n первенство
Ex. 14. Give extensive answers to these discussion questions:
1.What type of market is the stock exchange?
2.What services does the stock exchange render to the investor?
3.Is the stock exchange a highly organized market? Why?
4.Do the dealings on the stock exchange affect the prosperity of a working man?
5.Is the stock market/stock exchange important to industry and the government?
6.What does the broker do? How does he earn his living?
7.What part does the speculator play on the stock exchange?
8.Who would normally deal with the issue of new shares?
9.Is there ever a time when no one is buying and selling?
10.How long does business continue before every deal is settled up?
11.What are the functions of an issuing house?
12.How are securities traded on the OTC?
13.How can you explain numerous exchanges that sprung up in this country?
14.How can you account for internationalization of the stock market?
15.Will Europe have a single European Securities Market?
In order to get prepared for participation in the class discussion of the questions, write a short essay on the following:
a)People engaged at the stock exchange: market makers, bulls, bears, stags, speculators, specialists.
b)Existing types of stock market.
c)Stock market indices.
Ex. 15. Prepare a short talk on the following:
131
a)The connection between the riskiness of securities and their rates of return. How can risk be reduced through diversification?
b)A profile of a profitable Russian company covering in detail buying, selling and issuing securities.
c)Classification of markets (draw on the information from the exercises of this unit).
d)Do you own any shares? If so, say why. If not, explain your decision. (Is it because the Russian market is still thin or because investors are not properly protected against losses caused by decline in stock prices?)
Ex. 16. Go to the library and study regulations (constitutions and rules) that govern securities markets. Present your findings in class.
READING PRACTICE
Ex. 17. a) Look through the text below and say what the figures in the text stand for.
b) Reread the text carefully and explain what the Fourth Market implies and what prompted its emergence.
Third and Fourth Markets
Until the 1970s the New York Stock Exchange required its member firms to trade all NYSE-listed stocks at the exchange and to charge fixed commissions. For large institutions this was expensive. In particular, the existence of a required minimum commission rate created a serious problem since it exceeded the marginal cost of arranging large trades. Brokerage firms that were not members of the exchange faced no restrictions on the commissions they could charge and thus could compete effectively for large trades in NYSE-listed stocks. Such transactions were said to take place in the third market. More generally, the term "third market" now refers to the trading of any exchange-listed security in the over-the-counter market. The existence of such a market is enhanced today by the fact that its trading hours are not fixed (unlike exchanges), and that it can continue to trade securities even when trading is halted on an exchange. On average 18 million shares were traded in the third market during each day of 1992.
Until 1976 NYSE member firms were prohibited by Rule 394 from either acting as dealers in the third market or executing orders involving NYSE-listed securities for their customers in the third market. In 1976, Rule 394 was replaced by Rule 390, which permits the execution of these orders in the third market but still prohibits member firms from acting as dealers in the third market. However, the Securities and Exchange Commission has issued a rule that permits member firms to act as dealers in securities that became listed on the NYSE after April 26, 1979. Controversy still exists over Rule 390, as some people argue that it should be abolished completely to spur competition between the NYSE and the over-the-counter market, whereas others argue that having all orders funnelled to the NYSE will lead to the most competitive marketplace possible.
Many institutions have dispensed with brokers and exchanges altogether for transactions in exchange-listed stocks and other securities. Trades of this type, where the buyer and seller deal directly with each other, are sometimes said to take place in the fourth market. In the United States some of these transactions are facilitated by an automated computer/communications system called Instinet, which provides quotations and execution automatically. A subscriber can enter a limit order in the computerized "book", where it can be seen by other subscribers who can, in turn, signal their desire to take it. Whenever two orders are matched, the system automatically records the transaction and sets up the paperwork for its completion. Subscribers can also use the system to find likely partners for a trade, then conduct negotiations by telephone. In recent years automated electronic facilities have been developed to permit institutional investors to trade portfolios of stocks directly with each other.
Words you may need:
third market «третий рынок» (торговля ценными бумагами, зарегистрированными на фондовой бирже или на внебиржевом рынке брокерами, не являющимися членами биржи, и другими инвесторами)
fourth market «четвертый рынок» (торговля ценными бумагами между инвесторами без участия брокера/дилера)
funnel v (зд.) направлять, пропускать
132
dispense (with) v обходиться (без чего-л.)
limit order лимитный приказ (приказ клиента брокеру с ограничительным условием, например, максимальной или минимальной ценой)
Ex. 18. a) Read the text below quickly and name organizations involved in the issues,
b) Reread the text more carefully to find the answer to the question: What can guarantee the success of the issue?
The New Issue Market
The mere buying of securites traded on the Stock Exchange does not create new capital. The stock exchange does not itself issue new shares to the public. Fresh capital is provided through the mechanism known as the New Issue Market.
The Market has no outward formal organization or fixed place of business. Nevertheless it functions efficiently on the basis of a number of institutions working together: issuing houses, joint-stock banks, merchant bankers, insurance companies, stockbrokers, underwriters and others.
Issuing houses have become very active in the New Issue Market recently. An issuing house is a financial firm specializing in the issuing or floating of new securities for governments, municipalities and companies. Although this activity is not directly connected with the Stock Exchange, the Exchange is vitally interested in the activities of issuing houses; and the people who own and operate issuing houses have often been members of stock exchanges. The issuing house undertakes that the whole of a new issue of securities should be sold and makes all necessary arrangements for it.
It is charged with the entire "handling" procedure of the issue: this includes the arrangements for banks, other financial houses to share in the underwriting (only in a few cases do issuing houses underwrite the entire amount themselves); arrangements for the drawing up and publication of the prospectus.
Yet, even the most careful and competent handling will not guarantee the success of an issue. This depends on the attitude of the investing public, who will be guided very much by the reputation of the issuing house itself.
Issuing houses make arrangements with underwriters, who guarantee, for a commission, that if the public does not subscribe fully to the new issue the underwriters take up the remaining shares or stock.
Underwriting is a process whereby a group of investment bankers agree to purchase a new security issue at a set price and then offer it for sale to the general public.
Words you may need:
new issue market рынок новых эмиссий mere adj простой
outward adj внешний
issuing house эмиссионный дом
underwriter n гарант размещения ценных бумаг floating n выпуск (акций через биржу)
"handling" procedure (зд.) выполнение всех формальностей
Ex. 19. Study the financial section from a newspaper, which includes information about the stock prices of listed companies, and explain how to read stock quotations:
133
UNIT 10. INVESTMENT ACTIVITY
A. TEXT
INVESTMENTS
In economic science, investment is capital expenditure on physical productive assets, e.g. machinery, factory buildings, roads, bridges, houses, and stocks.
Real investments generally involve some kind of tangible asset.
As a financial term investment embraces purchases of stock exchange securities or deposits of money in banks, building societies, or other financial institutions, with a view to income and, in appropriate cases, capital gains.
Users of capital, from governments to every kind of industrial or commercial joint-stock company, all depend for the supply of their financial resources on those who are willing to invest their funds, on investors.
Investment is closely associated with other aspects of economic order such as the role of financial centres, labour migration, and the regime of international trade prevailing at the time.
Technological advances, the removal of exchange controls and financial deregulation have all contributed to the expansion of international capital flows. As a result foreign investment has become a fundamental feature of international economic development.
There are two main channels for international investment: foreign direct investment (FDI) and foreign indirect investment, or portfolio investment.
Foreign direct investment (FDI) occurs when citizens of one nation (the "home" nation) acquire managerial control of economic activities in some other nation (the "host" nation). Setting up a foreign operation through a joint venture, establishment of a foreign branch or the purchase or formation of a foreign subsidiary are examples of foreign direct investment.
Firms controlling activities in several nations have become known as "multinational enterprises" (MNSs), "transnational corporations" (TNCs) and, more recently, "global corporations".
The reasons why effects of FDI are generally assessed as positive can be summarized as follows: first, FDI speeds the international diffusion of new technologies and other efficiency enhancing intangible assets, such as organizational skills. Then, FDI in many national markets will stimulate competition among firms.
The process of supplying capital to a foreign institution, through a loan or purchase of stock, without sharing in the institutions management is foreign indirect investment.
In financial circles, individuals or households that own securities are known as individual investors. Along with them, there are institutional investors.
Institutional investors are a group of investors who have funds to invest as a consequence of the conduct of their business. The group includes insurance companies, banks, investment trusts, financial and industrial companies.
The past 30 years have witnessed a concentration of financial power in the hands of institutional investors. In
134
1990 they controlled over $6 trillion hi assets, the majority invested in common stock and corporate and government bonds.
An investor, when confronted with a list of investment possibilities, will want to assess the risks and general advantages and disadvantages connected with putting his or her money into this or that security. To receive higher return, investors must be prepared to accept a higher level of risk. Trying to limit or minimize the risk investors construct and diversify portfolios and spread their foreign investments among a number of different countries.
Institutional investors have contributed to development of new types of investment management techniques, sophisticated portfolio monitoring, have pioneered the application of quantitative security valuation techniques, such as dividend discount models.
In spite of the existing obstacles, recent years have seen a growing interest of foreign investors in the Russian market.
B. DIALOGUE
INVESTMENT CLIMATE
Russian: How do you assess the investment climate in your country?
Foreigner. As quite favourable. Foreign investments have been flowing into our country at an accelerating rate since we started our transition to a market economy.
R.: Who invests capital in your country?
F.: Both foreign companies and individuals. The US heads the list of the major investors. The investment policy pursued by the government focuses on foreign direct investments, I mean setting up joint ventures and establishing foreign branches or subsidiaries.
R.: What is the major reason for this striking growth of foreign investments?
F.: Investors are willing to invest because of two reasons: increase in the middle class that is driving economic development, and the decrease in politically motivated interference in the free market.
R.: Do you think the situation will continue?
F.: Definitely, the government have announced plans to privatize the banking, insurance, power, oil, steel and telecommunications industries, which is sure to encourage still more capital inflows.
R.: We know that your investment policy envisages setting up special economic zones as an additional vehicle for attracting foreign funds. Has anything been done in this direction yet?
F.: Our National Technology Park has been designated for this purpose. There are highly trained workers, scientific and production facilities in this locality.
R.: Will the local companies benefit from this?
F.: Of course. The benefits will include exemptions from all real estate taxes, as well as several options for the reduction of income taxes.
R.: It's been very interesting, thank you.
VOCABULARY LIST
A.investment activity инвестиционная деятельность
capital expenditure 
капиталовложения, вложение капитала
physical 
productive assets 
материальные, производственные фонды real investment инвестиции в реальный (основной) капитал
tangible 
assets материальные активы embrace 
v охватывать
capital gains прирост капитала user п пользователь
investor n инвестор
labour migration 
миграция рабочей силы prevailing 
adj превалирующий, преобладающий exchange control 
валютный контроль
financial deregulation 
сокращение объема вмешательства государства в финансовую сферу
135
international capital flows движение иностранного капитала international investment иностранные инвестиции
foreign direct investment (FDI) прямые иностранные инвестиции foreign indirect investment непрямые иностранные инвестиции portfolio investment портфельные инвестиции
managerial |
control административный контроль |
operation n (зд.) организация, хозяйствующая единица |
|
joint venture |
совместное предприятие |
foreign branch заграничное отделение
multinational enterprise многонациональная компания
transnational |
corporation транснациональная корпорация |
"global" corporation «глобальная» корпорация |
|
speed v ускорять |
|
diffusion |
n распространение |
skill(s) n навык(и) |
|
sharing |
(in) участие (в) |
individual |
investor частный инвестор |
institutional investor институциональный инвестор investment management управление портфелем ценных бумаг
technique(s) |
|
прием(ы), технологии |
quantitative |
|
security valuation количественная оценка инвестиционных активов |
dividend discount |
models модели дисконтирования финансовых потоков (дивидендов) |
|
obstacle |
n преграда, препятствие |
|
В. investment climate |
инвестиционный климат |
|
flow v течь |
|
|
at an accelerating |
|
rate все увеличивающимися темпами |
middle class |
|
средний класс |
interference |
|
n (зд.) вмешательство |
envisage |
v предусматривать |
|
designate |
|
v определять, обозначать |
real estate tax |
|
налог на недвижимость |
option n выбор, право выбора
EXERCISES
Ex. 1. Answer these questions:
A.1. What is investment?
2.Define the difference between real investment and financial investment.
3.In what ways can financial resources be raised?
4.Why does FDI take place?
5.What institutions handle investment in stocks and shares?
6.What role do institutional investors play?
7.How do investors make their choice of investment possibilities?
B.1. How does the foreigner characterize the investment climate in his country?
2.What country heads the list of the major investors?
3.Why are foreign investors willing to invest in the country?
4.What are the focal points of the country's investment policy?
Ex. 2. Give derivatives of: |
|
|
|
investment n |
finance n |
deposit n |
advance n |
channel n |
manager n |
control n |
share n |
own v |
contribute v |
application n |
risk n |
allocate v |
government n |
security n |
adjustment n |
136
assess v |
policy n |
borrow v |
Ex. 3. Find English equivalents for the following Russian phrases from the text:
A.инвестиции представляют собой вложение капитала; реальные инвестиции связаны с материальными активами; финансовые инвестиции связаны с приобретением ценных бумаг; депонирование средств в банках; пользователи; миграция рабочей силы; режим международной торговли, существующий в определенный момент; успехи в области технологии; отмена валютных ограничений; сокращение объема вмешательства государства в финансовую сферу; расширение международных финансовых потоков; основная черта международного экономического развития; прямые иностранные инвестиции; портфельные инвестиции; приобретать управленческий контроль; организация совместных предприятий; иностранное отделение фирмы; организация иностранного филиала фирмы; многонациональная компания; ускорять распространение новых технологий; организационные навыки; участвовать в управлении; частные и институциональные инвесторы; способы управления портфелем ценных бумаг;
B.переход к рыночной экономике; в центре инвестиционной политики, проводимой правительством, находится ...; рост среднего класса; политическое вмешательство; объявить о планах проведения приватизации; политика предусматривает; быть освобожденным от налогов.
Ex. 4. Say in a few words what the main text is about. Use the opening phrases from Ex. 4 (Unit 1). Ex. 5. Sum up the content of the dialogue. Use the phrases from Ex. 5 (Unit 1).
Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out:
Russian: Известно, что ваше правительство успешно проводит политику привлечения прямых иностранных инвестиций в страну, т.е. создания совместных предприятий, организации филиалов иностранных фирм и их дочерних предприятий. Каковы основные причины осуществления такой политики?
Foreigner: We look upon FDI as a major vehicle for the transfer of skills and diffusion of modern technology. Foreign investors have their own interests, of course.
R.: Безусловно, иностранных инвесторов привлекает ваша дешевая рабочая сила, сырьевые ресурсы, достаточно развитая транспортная инфраструктура. Хотя работа иностранных фирм, осуществляющих прямые инвестиции в вашу страну, связана с высоким финансовым риском.
F.: You are absolutely right. High inflation and interest rates, weak national currency present serious financial risks. I must say, however, that many people in my country are very critical about multinational enterprises.
R.: Мне хорошо понятно такое отношение к иностранным корпорациям. В моей стране также многие утверждают, что иностранные корпорации, вкладывающие капитал в нашу экономику, заинтересованы только в наших природных богатствах и в дешевой рабочей силе.
F.: By the way, how do you assess the investment situation in your country?
R.: Ситуация достаточно сложная. Прямые иностранные инвестиции в нашу страну сокращаются. В условиях высокой инфляции и неопределенности в налоговой сфере инвестиции становятся неэффективными для иностранных инвесторов. Наши местные инвесторы также не вкладывают капиталы в реальный сектор.
F.: What about portfolio investments?
R.: В условиях финансового кризиса мы должны развивать наш рынок государственных облигаций и корпоративных ценных бумаг, чтобы он стал привлекательным для иностранных инвесторов. Кстати, наши крупные государственные компании уже планируют выпуск как акций, так и облигаций.
F.: Let's hope that nonresidents will be interested in buying them.
Ex. 7. Work on vocabulary and grammar.
a) Study the key words of the unit in the dictionary at the back of this book:
137
investor, investment, assets, capital, risk, call options, put options.
b)Think of word combinations with these nouns: investor, investment, accounts, securities, yield.
c)Think of the verbs most commonly used with:
portfolio, intermediary, risk, loans, purchase, contributions, funds, money.
d) Match the verbs from (a) with the nouns from (b) below:
a) to make |
b) exchange control |
to invest in |
management |
to remove |
investments |
to expand |
securities |
to minimize |
capital flows |
to assess |
risks |
to stimulate |
competition |
to share in |
return |
to receive |
techniques |
to apply |
situation |
Ex. 8. a) Supply the articles where necessary.
b)Write down 3-5 questions about the text.
c)Say what advantages individuals have when they invest in investment companies.
Investment Companies
Investment companies are ... type of financial intermediary. They obtain money from investors and use it to purchase financial assets such as stocks and bonds. In return, the investors receive certain rights regarding ...
financial assets that the investment company has bought and any earnings that it may generate. In ... simplest and most common situation, the investment company has only one type of investor – stockholders.
For an individual there are two advantages of investing in such ... companies instead of investing directly in the financial asset that these companies own. Specifically, the advantages arise from (1) economies of scale and
(2) professional management. In describing these benefits, let's consider ... individual with moderate financial resources who wishes to invest in ... stock market.
In terms of economies of scale, the individual could buy stocks in odd lots and thus have ... diversified portfolio. However, the brokerage commissions on odd lot transactions are relatively high. Alternatively, the individual could purchase round lots, but would only be able to afford ... few different securities. Unfortunately, the individual would then be giving up ... benefits of owning a well-diversified portfolio. In order to receive the benefits of both diversification and substantially reduced brokerage commission, the individual could invest in the shares of... investment company. This is because economies of scale make it possible for an investment company to provide ... diversification at ... lower cost per dollar of investment than would be incurred by a small individual investor.
In terms of professional management, the individual investing directly in the stock market would have to go through all... details of investing, including making all buying and selling decisions as well as keeping records of all transactions for tax purposes. In doing so, the individual would have to be continually on the lookout for mispriced securities in ... attempt to find undervalued ones for purchase, while selling any that were found to be overvalued. Simultaneously, the individual would have to keep track of ... overall risk level of the portfolio that did not deviate from some desired level. However, by purchasing stock of an investment company, the individual can turn over all of these details to ... professional money manager.
Investment companies have ... problems but potential advantages to be gained from ... investing in an investment company still outweigh any disadvantages, particularly for smaller investors.
Words you may need:
generate v (зд.) изыскивать, получать
138
economies of scale экономия, обусловленная ростом масштаба производства odd lot неполный лот
round lot полный лот (партия ценных бумаг)
incur v терпеть убытки, принимать на себя расходы to keep records регистрировать, вести запись
to be on the lookout быть настороже
mispriced securities ценные бумаги по заниженной или завышенной цене to keep track (of) отслеживать
deviate v отклоняться
money manager менеджер, занимающийся покупкой и продажей ценных бумаг
Ex. 9. a) Supply the prepositions where necessary.
b)Write down 3-5 questions about the text.
c)Explain how most dynamic institutional investors today – pension funds and mutual funds – work.
The most dynamic institutional investors today are pension funds and mutual funds. Pension funds are a relatively recent phenomenon, which emerged ... the early 1950s.
Pension funds are retirement plans funded ... corporations or government agencies for their workers. Pension funds pool the contributions of employees and invest these funds ... various types of financial assets, such as corporate securities or real estate. Pension funds are often managed ... bank trust departments and life insurance companies.
Mutual funds have been even more impressive than pension funds.
Mutual funds are corporations which accept money ... savers and then use these funds to buy stocks, longterm debt instruments issued ... businesses or government units. These organizations pool funds and thus reduce risks ... diversification. They also achieve economies ... scale, which lower the costs of analyzing securities, managing portfolios, and buying and selling securities. Different funds are designed to meet the objectives of different types of savers. Hence, there are bond funds ... those who desire safety, stock funds ... savers who are willing to accept significant risks ... the hope of higher returns, and still other funds that are used as interestbearing checking accounts (the money market funds). There are hundreds ... different mutual funds ... dozens of different goals and purposes.
Words you may need:
mutual funds взаимные фонды real estate недвижимость
to accept risks принимать риски
money market (mutual) fund взаимный фонд денежного рынка
interest-bearing checking account текущий счет, на который начисляется процент
Ex. 10. a) Open the brackets putting the verbs in the correct form.
b) Say what you think about the decision of the companies to invest in Russia.
3 Food Giants Build Local Yogurt Plants
Foreign oil companies may pull out of Russian projects and several automobile joint ventures have been postponed, but international food processing companies feel now is the time to move production to Russia.
Three major Western food producers – Germany's Ehrmann, the Netherlands' Campina and France's Danone
– (to press) ahead with their plans to build yogurt factories in Moscow suburbs.
"The August [Rouble devaluation] made us realize all the more how important to is to have our own production here," said Christof Muller, head of Ehrmann's Moscow office.
The German company (to begin) building a dairy plant near the town of Ramenky, a 40-minute drive southwest of Moscow, a few weeks after the financial crisis (to break) out in the middle of August.
Estimated to cost around 70 million Deutsche marks ($40.9 million), the factory is to start production next fall. It (to have) the capacity to process 300 tons of milk a day into yogurt, sour cream, kefir and other products, Muller said.
The milk (to come) from local farms, while fruit for the yogurts will initially be imported frozen from
139
Germany, he added.
According to the Ehrmann representative, the company (to import) 43,000 tons of yogurt to Russia, which, by company estimates, (to account) for 25 per cent of the local market.
Muller (to say) the yogurt market could easily double, in the next two or three years. "There (to be) no fear of surplus production," he said.
"The market is far from saturated and there (to be) still plenty of room for expansion," he added.
Another reason Ehrmann (to build) a local production facility is stiff competition from Russian yogurt producers, such as Moscow's Wimm-Bill-Dann. Muller said the idea (to be) to combine Ehrmann's quality "with a Russian image."
Campina, a Dutch yogurt maker, is scheduled to begin work in May on its dairy plant at Stupino, 120 kilometers south of Moscow, (to say) a company executive who wished to remain anonymous.
The plant, which (to cost) more than $40 million to build, is expected to be completed in a year's time. It (to produce) about 84,000 tons of yogurt a year, the executive said.
The French company Danone (to start) work on its dairy plant near the town of Chekhov, 60 kilometers south of Moscow, several months ago, and will have invested around $2 million in the project by the year's end.
According to foreign analysts, the companies (to have) good reasons to establish operations in Russia: cheap labour and raw materials, first of all.
"But some of the calculations made before the crisis – payback periods of investment, volumes and prices – may have to be reviewed," the analysts say.
Words you may need:
payback period срок окупаемости
Ex. 11. a) Fill each gap with a suitable word from the box. b) Comment on the type of investment in this deal.
board |
huge |
strengthen |
benefit |
provider |
approval |
praise |
buy |
deal |
used |
projects |
|
|
|
|
|
Norwegians to Buy 25% of Vimpelcom
State-owned Norwegian telephone company Telenor said Tuesday that it will_______a 25 per cent stake in Russian cellular phone provider Vimpelcom for $160 million.
"Russia is a _______ market for mobile telephony and an important part of Telenor's international growth strategy," Tormod Hermansen, president and CEO of Telenor, said in a statement. "Vimpelcom fits well with our existing Russian investments."
The_______would mark Telenor's entrance into the Moscow mobile phone market. It already owns stakes in the St. Petersburg mobile phone company North West GSE, Extel in Kaliningrad and Stavtelesot in Stavropol.
The companies said the $160 million will be_______to develop Vimpelcom's cell phone licenses, fiber optic network, Internet services and other telecommunication_______ "We believe that the infusion of capital into the company at this time will_______the company's competitive position in the Russian cellular market, Vimpelcom's President said in a statement.
Under the terms of the deal, Vimpelcom will hand over a 25 per cent plus one share stake to Telenor. Vimpelcom said it expects to________from Telenor's experience in penetrating and developing the global
telephone market, and the Norwegian provider will in return get access to the Russians' extensive engineering expertise.
Vimpelcom, the first Russian firm to be listed on the New York Stock Exchange in 1996, posted a net profit of $61 million on turnover of $306 million last year.
The company, however, is suffering as the financial crisis shrinks its customer base.
The company, though, remains a favorite with stock analysts, who ________ it as one of the most transparent and well-managed in Russia.
Vimpelcom had 110,140 subscribers in the Moscow area at the end of 1997, the most recent figures available.
140