MOSCOW - AFK Sistema's Global Depositary Receipts, which are now trading successfully in London, have attracted foreign investors through an opportunity to participate in Svyazinvest privatization, an Aton Capital analyst said. Analysts deem the offering price (USD17 per GDR) a fair one, and in line with expectations. Sistema has offered a decent alternative to Mobile TeleSystems' securities, and a new blue chip, analysts say.

The successful placement of Sistema's GDRs, a company that had repeatedly voiced its intention to take part in Svyazinvest privatization, is likely to speed up the sale of the holding's state-owned stake. Some analysts admit that the terms of the auction for Svyazinvest privatization can become known in the very near future.

Yesterday, Sistema has launched conditional trading in the GDRs on the London Stock Exchange. The company expects to raise a total of USD1.56 through the IPO of its GDRs. The company has placed GDRs for up to about 16.5 percent of the its authorized capital.