Bloomberg News

Russian Technologies Offers Deripaska, Potanin Norilsk Tie-Up

December 12, 2008

Russian Technologies Corp. chief Sergei Chemezov offered to combine the state holding company’s copper assets with OAO GMK Norilsk Nickel, whose shareholders include billionaires Oleg Deripaska and Vladimir Potanin.

“We’ve made an offer in principle to do this to the owners of Norilsk stakes, so it’s up to them now to decide,” Chemezov, said in an interview today. Chemezov, a longtime ally of Prime Minister Vladimir Putin, declined to elaborate on the proposal.

Potanin owns 30 percent of Norilsk and Deripaska controls 25 percent through United Co. Rusal, the world’s largest producer of aluminum. The two investors last month ended a feud over Norilsk’s development and agreed to cooperate on strategy.

Russian Technologies and billionaire Alisher Usmanov’s OAO Metalloinvest own the rights to develop Udokan, Russia’s biggest untapped copper deposit. Usmanov owns about 5 percent of Moscow- based Norilsk, which is Russia’s largest producer of nickel, palladium, platinum and copper.

Rusal pledged its Norilsk stake to state bailout bank VEB in exchange for a $4.5 billion loan last month.

To contact the reporters on this story: Yuriy Humber in Moscow at yhumber@bloomberg.net; Torrey Clark in Moscow at tclark8@bloomberg.net.

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net


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