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Bakshish Backlash

15 October 2015 by lberuti

TLIASS ( TeliaSonera AB ) has been embroiled in legal probes in Sweden, the Netherlands and in the US about licenses they bought in Uzkekistan back in 2007. The market has been aware of these issues for a while, but the situation took another twist this morning as after Muddy Waters published a report questioning TLIASS’s transparency about their Eurasian business. They could face hefty fines because of questionable payments in Eurasia, their ability to pay dividends could be jeopardized and their credit profile could be significantly impacted according to the report. Even though the company gave a reassuring statement saying that it is as “open and transparent” as it is possible to be regarding listing requirement and ongoing investigations, the 5 year risk premium was marked 41bps wider at 92bps.