Oct. 25 (Bloomberg) -- OAO Rostelecom, Russia’s dominant fixed-line phone operator, rose to the highest level in a month in New York after the company said the board of directors will consider buying back shares from the market.
American depositary receipts of Moscow-based Rostelecom rose 2.6 percent to $29.85 at 12:52 p.m. in New York, the highest level since Sept. 22. The company’s stock on Russia’s Micex index gained 3.1 percent to 152.44 rubles, the equivalent of $5. One ADR represents six ordinary shares.
Rostelecom’s board will discuss the possible buyback when it meets on Oct. 31, according to a regulatory filing from the company. Preferred shares may be included in the buyback and the stock may be used to pay for assets and for listing Rostelecom stock in London, Russian newswire RIA Novosti reported, citing Alexander Provotorov, the chief executive officer.
Investors expect the board to “approve the share buyback program on Oct. 31, which is a positive news,” Olga Belenkaya, an analyst at Sovlink LLC, a Moscow-based investment company, said by phone.
Rostelecom ADRs have slipped 1.6 percent in 2011 and the stock was the biggest gainer on the Bloomberg Russia-US 14 index of Russian companies traded in the U.S. today.
--Editor: Emma O’Brien, Marie-France Han
To contact the reporter on this story: Halia Pavliva in New York at email@example.com;
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org