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Timing Off for RAO
RAO UES of Russia GDR led the downward charge of Russian securities on the London Stock Exchange yesterday with a loss of 6 percent after the completion of the first stage of the company's reorganization. Analysts say that, at $121.50 (one GDR = 100 shares), and 2 percent below the buyback price set by RAO, they are now strongly undervalued and will soon see a spurt of growth.
The OGK-5 and TGK-5 generating plants have been split off from the parent company. RAO shareholders will receive 0.41 common shares of OGK-5 and 13.59 common shares of TGK-5 for every common share of RAO. One preferred share in RAO will receive 0.37 common shares in OGK-5 and 12.45 common shares in TGK-5.
Russian investors learned of the completion of the first stage of the reorganization on Tuesday at 5:00 p.m. Moscow time, although it was registered with the Federal Tax Service on September 3. Thus, trading on September 4 proceeded without taking into account the changes and RAO securities lost more than 3 percent. On Tuesday, RAO GDR gained 1.57 percent in London, bucking the trend in Moscow.
In London, trading began in RAO stock without the generating plants only yesterday. Yesterday, RAO stock fell insignificantly in Moscow, 0.7 percent on MICEX and 1.05 percent on RTS with 3 billion rubles in trading. The daily average for trading in RAO stock was 15-20 billion rubles in June and July.
www.kommersant.com
All the Article in Russian as of Sep. 06, 2007
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