Oligarch Eyes bigger share in Norilsk-Nickel
Russian billionaire Vladimir Potanin is said to be interested in buying Rusal’s 25 percent share in Norilsk-Nickel, making him a majority holder in the company. Norilsk-Nickel shares jumped 10 percent at the stock exchanges in bother Moscow and London on Wednesday.
Today, Potanin’s investment company Interros, holds a 25 percent share in the metallurgical company Norilsk-Nickel. If Interros is successful with buying Rusal’s 25 percent plus two shares, Potanin’s investment company will be majority owner with just over 50 percent of the shares.
The fight over Norilsk-Nickel started when Mikhail Prokhorov, co-owner of the company with Vladimir Potanin, decided to sell his share of the company last year. The decision left Potanin in a vulnerable position, as Prokhorov sold his stake to Rusal.
Norilsk-Nickel is the world’s biggest producer of nickel and palladium. The company operates nickel mines in Zapolyarny and smelters in the towns of Nikel and Monchegorsk on the Kola Peninsula in addition to the mines and smelters in Norilsk in northern Siberia.
The information about Potanin’s interest to buy Rusal’s shares is given by a source in the investment company interviewed by Reuters Wednesday.
Norilsk-Nickel shares rallied on Wednesday following gains of nickel and copper. At the Moscow Stock Exchange the Norilsk-Nickel was up more than 10 percent, while it jumped near 10 percent at London Stock Exchange.
In late May, BarentsObserver.com wrote that Norilsk-Nickel for 2008 posted a USD 555 million loss, the worst result in 11 years. In 2007, the company had a 5.33 billion USD net profit.
Following the global economical downturn the sales for nickel dropped 40 percent year on year.
