Russia's largest nickel miner Norilsk Nickel is ready to discuss paying more than the $12 billion it has already offeredfor its 25% stake, held by the world's top aluminum producer RusAl, Norilsk Nickel said on Monday.
"We are aware that the deal is supported by two RusAl shareholders - M.D. Prokhorov and V.F. Vekselberg. In its turn, Norilsk Nickel management is ready to discuss a possibility of a higher offer price," Norilsk said in a statement.
"At the same time, participants of the process must realize that the final price of the deal cannot exceed the level at which the company maintains its current production level, the stability of fulfilling its long-term development program, a social program and a modernization program," the company said.
The Norilsk Nickel offer is valid until 3 p.m., December 28.
RusAl, controlled by billionaire Oleg Deripaska, who bought a quarter of Norilsk in 2008, claims the Norilsk board is dominated by officials linked with Interros, the investment arm of another Russian billionaire shareholder, Vladimir Potanin after a June AGM, where RusAl lost one board seat, while Interros increased its representation.
"Company management is sure that in the current situation it is a necessary step to end the corporate conflict curbing Norilsk Nickel's shareholder value growth and distracting company's inner resources to destructive outside impulses," Norilsk Nickel said.
"It is obvious that such a solution to the conflict is also in interests of RusAl and its shareholders, since getting significant cash for the Norilsk Nickel stake will help the aluminum company cut its debt volume which is significant and limits its capitalization growth."
Norilsk also said that there were no real talks on the issue.
Last week, Norilsk said RusAl "greenmailed" it to get a higher price for the stake by requesting an emergency shareholders' meeting to replace its board.
"We are forced to say that if the possible deal falls through, Norilsk Nickel will have to look for other ways to neutralize the negative influence of the shareholder conflict on the company's current operations and its strategic development," the firm said, adding its board planned to discuss a buy back of shares.
"It is obvious that if US RusAl refuses to sell its stake, Norilsk Nickel will not be able to offer similarly profitable terms of quitting company capital in a short or mid-term perspective."
MOSCOW, December 27 (RIA Novosti)
