Bloomberg News

Sistema May Challenge Russian Rail on Losing Bid, IFX Says

October 16, 2012

Billionaire Vladimir Evtushenkov’s AFK Sistema may challenge Russian Rail over its decision to sell 25 percent of OAO Freight One to a rival, Interfax reported, citing Sistema President Mikhail Shamolin.

The state-owned OAO Russian Railways said today it selected billionaire Vladimir Lisin’s UCL Holding to buy its remaining 25 percent of OAO Freight One, Russia’s largest rail operator, with a bid of 50 billion rubles ($1.6 billion). UCL bought 75 percent of Freight One last year for 125.5 billion rubles.

Sistema is considering either a challenge filed with the rail regulator or legal action, Interfax cited Shamolin as saying. Company spokeswoman Yuliya Belous couldn’t immediately be reached by phone.

To contact the reporters on this story: Stepan Kravchenko in Moscow at skravchenko@bloomberg.net; Ekaterina Shatalova in Moscow at eshatalova@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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