Russia's O2 rethinks stock strategy

Rules out possibility of selling 25% of stock

MOSCOW -- Russian entertainment television channel O2 TV has ruled out the possibility of selling 25% of its stock to a strategic investor, which was announced this month, instead opting for the stock exchange and institutional investors.

The Russian business newspaper RBC Daily reported Monday that the sale of the shares is aimed not only at raising capital for the company's development but also can be viewed as a step towards an IPO that may take place in 2009.

O2 TV expects the initial share price to be $400-$450 and rise to $510-$520 in the short term, which would allow the television channel to generate up to $13 million from the sale.

O2 primarily targets the 18-35 demo and is distributed through 250 cable operators.