Rusal snubs Interros’ $9-bn offer to buy 25-% stake in Norilsk Nickel
25 Oct 2010
Russian aluminium giant and the world's largest producer of the metal, UC Rusal has snubbed an offer by Russian billionaire Vladimir Potanin's holding company Interros to buy its 25-per cent stake in leading multi-metal miner MMC Norilsk Nickel.
Citing a source close to Interros, Vedomosti reported Friday that Potanin has sent a letter to Rusal chairman Viktor Vekselberg seeking to commence negotiations on the sale of Rusal' s 25-per cent share in Norilsk Nickel, further stating that Interros together with its partners was willing to pay around $9 billion for it.
Nevertheless, according to UC Rusal representative, the company' s board considers its stake in the nickel miner as a strategic investment and the aluminium miner does not intend to part with it.
Norilsk Nickel is the largest diversified mining and metallurgical company in Russia and the world' s largest producer of nickel and palladium, besides being one of the world' s leading producers of platinum, rhodium, copper, and cobalt.
The company' s key production areas are located in northern Russia on the Taimyr and Kola peninsulas. It also has assets in Finland, the US, Australia, Botswana and South Africa. It reported revenue of over $10 billion in 2009.
Norilsk Nickel shares are listed on Russia' s RTS, Nasdaq, and the stock exchanges of London and Berlin.
