SIEMENS GOING TO PURCHASE 71% OF RUSSIAN POWER MACHINES COMPANY

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MOSCOW, July 16 (RIA Novosti) - Russia's Federal Antimonopoly Service (FAS) will respond to Germany's Siemens as to its application on purchasing 71% of the Power Machines' shares, a spokeswoman of the FAS press service told RIA Novosti on Friday.

"We have received an application from Siemens, which is to be considered within 30 days", she said.

Currently, the received documents are being looked into by the FAS experts, the spokeswoman pointed out.

The information that Siemens intended to purchase the Power Machines' controlling interest was voiced on July 13 by Evgeni Yakovlev, director general of the Russian company, who, at the same time, pointed out that if the purchase took place, the previously announced merger with the United Machinery Plants could fail to follow the planned scheme.

Speaking to RIA Novosti, Siemens' corporate communications director Alexey Grogoriev kept low profile commenting on the information that the FAS had received the application on purchasing the Power Machines' shares.

"The only thing I can tell you is that we and the Power Machines are holding standard talks, that is why I may not make comments as to any information related to the talks. We taken them (the talks) very delicate", he said.

Mr. Grigoriev reminded the audience that Siemens had been conducting the talks with the Power Machines for several months adding that Siemens is the Russian company's minority shareholder (owning almost 5% of the shares).

"We envisage various options with regard to the Power Machines, but these are private talks. I can nothing more", he pointed out.

At the same time, on Tuesday the concern Power Machines launched the merger with the United Machinery Plants.

The Power Machines' shareholders applied for exchanging 60% of the shares for the United Machinery Plants' shares, a spokesman of the United Machinery Plants told RIA Novosti earlier.

"Today (July 13) terminates the period of exchange applications, and it means that the companies' merger begins. The United Machinery Plants gets the Power Machines' controlling interest", the spokesman pointed out.

The concern Power Machines is Russia's leading manufacturer and vendor of equipment for hydro-, thermal, gas and nuclear power plants, for energy transmission and distribution as well as transport and railway equipment.

The United Machinery Plants is one of Europe's leaders providing the key economic industries of power production, metallurgy and mining with hi-tech machines and equipment.

On December 18, 2003, the United Machinery Plants and the Power Machines announced a merger of equals. The merger should lead to establishing Russia's largest energy equipment manufacturer.

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