RAO UES of Russia Insures Its Reorganization
RAO UES of Russia intends to set up a reserve fund for the expenditures connected with its upcoming reorganization, which is due to be completed by July 1, 2008. The fund will consist of 13 billion rubles. Analysts think that the main expenses that the fund will cover will be legal services and financial consulting and compensation for laid off employees and the pension fund. Kommersant has obtained information that most of the fund will not be spent.
The fund will be accumulated from subscriber payments and the sale of assets. The final decision on the establishment of the fund is to be made by the company's board of directors on August 30.
Analysts point out that the sum intended for the fund is not large for its purposes. “More expenses go to banks for consultations to organize a supplemental emission,” Aton analyst Dmitry Skryabin noted. Prospect's Alexey Solovyev agrees. “I think they will bring in Merril Lynch, Goldman Sachs, Deutsche Bank, UBS,” he said. “In addition, if the market corrects the price for buying the stock lower, that will require a considerable sum.”
www.kommersant.com
All the Article in Russian as of Aug. 25, 2006
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Photo: Alexander Miridonov
