Bloomberg News

MRSK Extends Longest Drop in Year on Kommersant Share Report

June 22, 2012

OAO MRSK Holding (MRSK) tumbled for an eighth day, the longest streak of declines in almost a year, after Kommersant reported the country’s largest electricity distribution company may issue new shares.

MRSK lost 2 percent to 1.608 rubles by the close in Moscow, the longest losing streak since August 2011.

The company should issue additional shares to attract investors and raise funds for investments, Kommersant reported today, citing Energy Minister Alexander Novak.

“The new share issues imply dilution of existing minorities,” Alfa Bank analysts led by Alexander Kornilov said in an e-mailed note. “We doubt the government will be successful finding bidders for these assets after it has completely undermined the investment climate in utilities.”

-- Editors: Alex Nicholson, Linda Shen

To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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