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(Recasts with Italian consolidation possibility, adds Italiananalyst comment)
MOSCOW/MILAN, March 19 (Reuters) - Russian telecoms operatorVimpelcom is considering a refinancing plan for itsItalian subsidiary Wind which could lead to a merger for theunit that has debt of $14.5 billion.
There has been media speculation that Vimpelcom will seek torefinance or merge Wind with a rival because Italy's mobilecompanies have faced fierce price competition.
Telecom Italia is the leading player in Italy'smobile phone market by subscribers, followed by Vodafone Italia, Vimpelcom's Wind and Hutchison Whampoa's 3Italia.
"In theory, Wind should merge with the Hutchison unit andthis is simply a way to avoid being a distressed seller," saidan Italian analyst who did not want to be named. "Now we need tounderstand if this move can speed up or slow down the processbut it all certainly points in that direction."
The plan to refinance Wind may include a cash injection of500 million euros ($695.7 million) by Vimpelcom, the companysaid in a statement on Wednesday.
"The aim of the refinancing plan is to provide (Vimpelcom)with significant interest cost savings, stronger cash flowgeneration, a deleveraging trajectory and an extended maturityprofile," Vimpelcom said.
The company said Wind was seeking lenders' consent to amendits lending agreement to allow the financing plan to beimplemented. The amendments would include up to an additional800 million euros of transaction costs, fees and expenses.
Vimpelcom said it could not comment on any mergerspeculation regarding Wind.
The Financial Times reported in December that Wind had beenin discussions with Hong Kong-based Hutchison Whampoa, citingsources familiar with the situation.
Hutchison Whampoa last year tried to merge with TelecomItalia, which had rejected approaches made by Wind's formerowner Naguib Sawiris, the Egyptian business tycoon.
Vimpelcom, part-owned by Mikhail Fridman's Altimo andNorway's Telenor, has been on a drive to cut its $22.6billion debt and in January slashed its dividend to free up cashto bring down its debt ratio.
The third largest mobile operator in Russia, Vimpelcombought Wind in 2011 in a deal which also saw it take a 51percent stake in Egypt-based Orascom Telecom for $6billion.
($1 = 0.7188 euros) (Reporting by Megan Davies and Isla Binnie in Milan; Editing byJason Bush and Pravin Char)
