The owners of Lattelecom, TeliaSonera (49%) and the Latvian government (51%) were discussing on November 30 the fate of CEO Nils Melngailis and two other executives whose mandates expire December 10. A decision, based on the recommendations of the owners, will come next week (after December 3) at the earliest.
According to my sources, the Swedes, by not objecting to Melngailis plans for a management and staff buy-out of Lattelecom have indirectly declared that they want to keep Melngailis as CEO and not upset the status quo. TeliaSonera can only gain by getting out of its nearly-stranded investment in the fixed-line operator and getting a full 100% of Latvian Mobile Telephone (LMT) The government, however, seems to be considering dumping Melngailis, possibly as a way to back out of the MBO for reasons, so to speak, that lie beyond conventional reasoning.
The deal has already been shaky since the Latvian government's present crisis (prime minister Aigars Kalvitis has set an on-again, maybe off-again resignation date of December 5), which arose for reasons unrelated to the Lattelecom deal. If it goes down (rather than goes down :) ), Melngailis would resign anyway.
As to what happens next - I would say -- Nils gets an international position somewhere, with the usual hassles of moving residence and family, while Lattelecom faces the consequences of what can only be described as a typical, but in this case, very large-scale Latvian clusterfuck. TeliaSonera continues to sing the role of the half-mother Agonistes in this increasingly bizarre telco opera.