Russia's Mail.ru to list in London

Mail.ru, which owns a stake in Facebook, is set to become Europe's largest listed internet business after plans to float a subsidiary in London emerged over the weekend.

The group, previously called Digital Sky Technologies, is the largest internet business in Russia. Marketing for the flotation of the unit, of the same name, is set to start this week, sources close to the company said.

The group will not enter the FTSE 100, despite a value of about £3bn, as it is only listing global depository receipts. Mail.ru declined to comment.

Along with its holding in Facebook, Mail.ru has invested in social gaming company Zynga. It also has a series of holdings in Russia including social networking sites Vkontakte and Odnoklassniki.