Mega-merger move in metallurgy

RUSAL and Norilsk want to solve their own problems (Summary)
MOSCOW, 25 November (RIA Novosti). The planned mega-merger between
the non-ferrous and precious metals producer Norilsk Nickel and
aluminum company RUSAL has been postponed because of the financial
crisis until further notice.

"At this stage we need to focus on solving problems that are facing
our company," said Vladimir Potanin, head of the conglomerate
Interros, on Tuesday in Moscow. Interros owns approximately 30 percent
of Norilsk shares. His group is also open for cooperation on the board
of Norilsk Nickel, Alisher, especially with the holding company of
billionaire Usmanov Metalloinvest. Previously Metalloinvest had bought
about five percent of the shares of Norilsk Nickel on the market.

Oleg Deripaska, which holds the world's largest aluminum company
RUSAL 25 percent plus two shares in Norilsk Nickel, confirmed the
information.

Deripaska took over in late April this year, the package of Norilsk
Nickel's shares at the Onexim Group of Mikhail Prokhorov. Potanin and
Usmanov late May signed a memorandum on joint investments in the
mining and metallurgy industry in Russia and abroad. The aim was to
rise within five years, the worldwide industry leader, it said. At
that time, was also Deripaska conglomerate Basic Element (Basel),
called for cooperation.

In addition, Gallagher Group Usmanows expressed the intention to
purchase up to ten percent of Norilsk shares. Interros plans to
acquire a blocking minority in Metalloinvest. The planned joint
investment value the site at around 60 billion U.S. dollars.

Previously had been planned to carry out the merger on the basis of
Interros and Metalloinvest. Negotiations began after Prokhorov had
announced the sale of a 25-percent blocking minority in Norilsk in
April at the RUSAL group known. The merger of Interros with
Metalloinvest was regarded as an alternative to the merger with RUSAL.
In May, the Deripaska takeover of the blocking minority at Norilsk
Nickel signed and sealed, which Interros and Metalloinvest their
merger talks ceased.

Norilsk Nickel is one of the world's largest producers of non-ferrous
and precious metals. In the company accounts for more than 20 percent
of global production of nickel, more than ten percent of cobalt and
three percent of copper production. In Russia, the Group controlled 96
percent of the production of nickel, 55 percent of copper and 95
percent of cobalt.