Norilsk Nickel, RUSAL clash over share buyback

The board of Russian metals group Norilsk Nickel has approved a new share buyback and was swiftly criticised by aluminium group UC RUSAL for acting in the interest of long-time rival shareholder Interros. Norilsk has said it has yet to decide the number of shares to be purchased and their price.

UC RUSAL, which holds a 25 per cent stake in Norilsk, lashed out at the decision, saying it was “not aimed at meeting the interests of all the shareholders of the company, but exclusively those of the Interros group”. Interros, the investment vehicle of tycoon Vladimir Potanin, holds a 30 per cent stake in Norilsk and has frequently clashed with UC RUSAL, controlled by rival tycoon Oleg Deripaska, over Norilsk’s strategy and buybacks.

In December, UC RUSAL turned down a $13-billion offer from Norilsk to buy out the stake and another in March to buy 20 percent for $12.8 billion. Some analysts welcomed the prospect of the shares being cancelled.