OAO RusHydro (RSHYY:US) fell the most in nine months in New York trading on speculation Russia’s largest hydropower company’s board will signal it welcomes a stock offering that will weaken the minority shareholders.
The American depositary receipts dropped 11 percent to $2.30 at 2:21 p.m. in New York, the most since Sept. 22. RusHydro was the biggest decliner on the Bloomberg Russia-US Equity Index of Russian companies traded in the U.S. The gauge dropped 1.4 percent to 87.23.
RusHydro may hold a secondary public share sale to allow OAO Rosneftegaz to acquire a 25.8 percent stake in the company, Kommersant said on June 19, citing people familiar with the plan it didn’t identify. The company’s board of directors meets on June 22. The government owned 60.38 percent of RusHydro as of March 31, according to the company’s website.
“If the plan is approved, it undermines minority shareholders’ rights,” Sergey Beiden, an analyst at Otkritie brokerage in Moscow, said by phone today. “We can expect surprises from the board.”
RusHydro fell 7.6 percent to 77.82 kopeks in Moscow, or 2 U.S. cents, declining the most since May 23.
Elena Vishnyakova, head of RusHydro’s press office in Moscow, said by e-mail today that the company is not commenting on the Kommersant report.
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