Bloomberg News

Norilsk Cut to `Sell' at Citigroup on Nickel Outlook, Dispute

October 17, 2008

Citigroup Inc. cut its recommendation on OAO GMK Norilsk Nickel, citing a ``weak outlook'' for the metal and a dispute between shareholders.

The bank, which cuts its recommendation to ``sell'' from ``hold,'' also reduced its 12-month share price estimate 78 percent to $69.

``Nickel, copper and PGMs fundamentals are weak and, in addition to a fundamentally weak outlook, we believe that the ongoing battle for control could be damaging for the company,'' Moscow-based Citigroup analyst Daniel Yakub said in a report today.

To contact the reporter on this story: Maria Kolesnikova in Moscow at mkolesnikova@bloomberg.net.

To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net.


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