BLBG:Norilsk Nickel Rallies After Rusal Rejects Its Buyback Offer
OAO GMK Norilsk Nickel advanced for a second day after United Co. Rusal yesterday rejected an offer for its 15 percent stake in Russia’s largest miner for $8.75 billion.
Its shares gained as much as 2.2 percent and last traded 0.6 percent higher at 7,123 rubles by 12:40 a.m. in Moscow.
Rusal’s board unanimously rejected Norilsk’s offer to buy back the stake, the aluminum producer said in an e-mailed statement.
“Norilsk should be supported in the short term by the buyback price,” UralSib Financial Corp analyst Dmitry Smolin, wrote in an e-mailed report today. Smolin expects Norilsk Nickel to make the same buyback offer to all other shareholders at the same price within one-two weeks.
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To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net
