Oleg Baibakov, president of City Co. and former managing director at GMK Norilsk Nickel
Photo: Ildar Azyukov
| Other Photos |
 |
|
 |
Guta Group Asks Too Much for City
Obviously unable to amass the majority stake in City Co., Guta Group is in talks to dispose of its 38 percent in that asset management company under the Moscow-City Business Center project, Kommersant found out. Similarly craving for majority holding, GMK Norilsk Nickel has attempted to buy out the stake but failed to agree on the price. Vneshtorgbank (VTB), Novolipetsk Metallurgical Works (NLMK), Severstal and the companies controlled by LUKOIL Vice President Leonid Fedun are tipped as potential buyers.
City Co. was set up in 1992 to construct Moscow-City business center. As a project managing company, City gets from 1 percent to 2 percent fee from selling construction contracts and owns some assets located in the project area. Guta Group has 38 percent in City. GMK Norilsk Nickel is another big holder; its affiliates bought out from SPI around 32 percent in April; today’s ownership stands at 46 percent.
On April 18, the Court banned Oleg Baibakov, president of City Co. and former managing director at GMK Norilsk Nickel, to dispose of the City assets. Almost simultaneously, Norilsk Nickel acquired Ediny Registrator (Unified Registrar), which keeps the register of the City’s holders. Norilsk Nickel disrupted two EGMs of the company initiated by Guta and slated for May 20 and May 31.
Guta called new EGMs in June, which were similarly ingnored by Norilsk Nickel. The new BOD, the better part of which acts on behalf of Guta, was finally elected on June 20. On the same day, it was decided to replace Ediny Registrator with Moscow Financial Center. As a result of the holders’ conflict, City had two independent boards of directors in June; the authority of each of them expired July 1.
Willing to break the deadlock, Guta has attempted to sell the assets. A source close to negotiations told Kommersant Guta held talks with NLMK’s owner Vladimir Lisin, LUKOIL Vice President Leonid Fedun, Severstal co-owner Alexey Mordashov, Norilsk Nickel owners and VTB representatives.
“We know Guta is negotiating about the stock disposal and welcomes the new owner in any case. We are sure the relations will be better than with Guta,” said Oleg Baibakov. In Norilsk Nickel, they explained off-the-record yesterday they had attempted to get the 5 percent from Guta they needed to attain majority holding, but the price proved too high. Guta’s briefer Andrey Pershin refused to comment Monday.
Severstal, NLMK, VTB declined they are in talks with Guta about the asset purchase.
A source told Kommersant Guta wants between $100 million and $120 million for the 38-percent stake and the buyers think it too much.
www.kommersant.com
All the Article in Russian as of July 12, 2005
|
|
|
