The Riga Stock Exchange (owned by Sweden's OMX) has proposed organizing an auction of stakes in Lattelecom as an alternative to the MBO proposed by CEO Nils Melngailis. This has been proposed earlier by the RSE in somewhat different form. It is a plan that passes the Alfred E. Newman test "not insane". It will end up giving Lattelecom to TeliaSonera and a few other bidders, probably at a lower price, if the Swedes can be persuaded to divest and buy back their 49 % stake.
I am in the US at a borrowed computer, hence writing this in a somewhat different style.
Whatever happens, I am still convinced that the Latvian government will "sink" the MBO, get rid of Melngailis and effectively slash the price of Lattelecom for some future sale process, be it an auction or something else.