VimpelCom, Russia?s second-largest cellphone company, has offered to buy a rival, Golden Telecom, for about $4.2 billion to create Russia?s first integrated mobile and fixed-line provider.

VimpelCom offered $105 a share for the Internet, voice and data provider, 3.5 percent higher than the closing price Friday, the companies said. They are "in discussions regarding the potential acquisition of all the outstanding common stock" of Golden Telecom, according to the statement. VimpelCom, which had more than 61 million subscribers at the end of October in Russia, Armenia, Kazakhstan, Ukraine, Tajikistan, Uzbekistan and Georgia, wants to branch out in more markets and into services like broadband. Golden Telecom said Nov. 8 it had 394,900 broadband subscribers in Russia.
sections: Economics