September 08, 2008

Mr Mordashov buys stake in Power Machines – Report

Handelsblatt citing inside sources reported that Mr Alexei Mordashov has bought a 30.4% stake in plant supplier Power Machines, thereby becoming a partner of Siemens AG, which holds a 25% stake in the company. As per report Mr Mordashov acquired the stake from Mr Vladimir Potanin president of the Interros investment group.

As per report, Siemens and RAO Unified Electricity System both waived their right of first refusal on the stake, paving the way for Mordashov.

The newspaper said that Power Machines has attracted the interest of a number of investors as it could play a vital role in the USD 100 billion modernizations of Russia's electricity industry.

The report added that Mr Oleg Deripaska had also filed an application to the anti monopoly agency to acquire an 82% in Power Machines in July 2007.

The report also said that Siemens had originally intended to acquire a greater stake in the company but was rejected by the Russian antitrust authority on grounds of national security, as Power Machines also produces ammunitions.