Stockholm-based TeliaSonera said it would pay Kazakhtelecom JSC, the country's state-owned fixed-line operator, $1.52 billion for its remaining Kcell stake, giving it a majority of the Kazakhstan cellular services company.

"Depending on the share price development after the IPO, TeliaSonera may have to make an additional payment to Kazakhtelecom," the company said.

TeliaSonera said the acquisition would give it 61.7% of Kcell through a web of ventures and investments. Kcell itself is 51%-owned by Fintur Holdings BV, an investment vehicle 58.6% held by TeliaSonera. Turkish provider Turkcell Iletisim Hizmetleri AS owns the remainder of Fintur, but TeliaSonera also owns 38% of Turkcell.

The announcement comes amid days of rioting in the former Soviet bloc country over wage disputes with oil workers. Analysts have warned the uprisings could result in a Libya-like revolution in Kazakhstan, which is the second-biggest oil producer among former Soviet countries behind Russia.

Although TeliaSonera has not been an aggressive acquirer, it has worked to ensure it controls companies in which it has a stake. Two years ago, it spent just under $700 million to mop up the outstanding 39.9% of Estonia's AS Eesti Telekom and the 37.1% of Lithuanian telecom TEO LT AB it didn't already own, sealing its dominance in the Baltic.

Kcell is the largest of the three cellular providers in Kazakhstan with about 50% of the market and 8.9 million customers, according to TeliaSonera.

"Kcell is a clear market leader in Kazakhstan, the largest market in Central Asia, and has shown remarkable growth over the years," said TeliaSonera Eurasia president Tero Kivisaari in a statement.

The Swedish company and the Altimo phone division of Russia's Alfa Bank are also currently involved in a legal battle with Turkcell but fell short of their desire to remove chairman Colin Williams. The spat followed TeliaSonera's 2005 purchase of Turkcell shares from Turkcell owner Çukurova Holding AS.

An International Chamber of Commerce arbitration panel awarded TeliaSonera $932 million as part of the battle in September, but the company has yet to collect.