Nickel: Ceasefire in Norilsk

For the next few years by the table in any case, a merger with Rusal
and heavily indebted to the metal group Metalloinvest the world's
largest metallurgical company.
Moscow (est). About half a year, the world's largest nickel and
palladium producer, "Norilsk Nickel" buffeted by an irreconcilable
conflict between the principal owners. Now they have apparently agreed
to a constructive interaction. As Russia's Oleg Deripaska and Vladimir
Potanin top magnates (owns 29.9 per cent) on Tuesday announced that
they will lead the Group in future parity. For this purpose, four are
representatives of both sides - three independent directors and a
representative of the state - to move into the executive council.
The aim of the agreement is there, the group again on its feet.
Finally, the market capitalization of the Group by 4.5-fold to $ 13.53
billion was broken into. The devaluation had resulted in Deripaska's
Rusal had aluminum monopolist, who had purchased in April, the
blocking minority at "Norilsk Nickel", collateralize the loan taken

out for it again. At the end is the state with 4.5 billion dollars and
has been skipped so acquired under the current rules for loans also
support the right to send a representative to the group.
For the next few years by the table in any case, a merger with Rusal
and heavily indebted - as had been rumored - with the metal group
Metalloinvest the world's largest metallurgical company. "At this
stage we need to focus on solving problems that are facing our
company," said Vladimir Potanin. The verdict of the analysts on the
current ceasefire, however, fell out differently. It is pointed out
above all the confusion, what is with Deripaska's blocking minority,
with whom he has secured the state credit. Deripaska should not
refinance until the end of 2009, the share going to the state.
Was important that currently has been no nationalization and
redistribution of property and the value of the shares will now be
more predictable than during the conflict period, said Dmitry
Skvortsov, an analyst with Bank of Moscow.