The Moscow Times reported that shares in Norilsk Nickel opened up Monday, only to close down 5.1% in a falling market following an announcement that its subsidiaries had bought an 8.7% stake in the company.

Shares were up as much as 5.2% on the MICEX at 11:00 AM as analysts said the acquisition strengthened the position of a major shareholder, billionaire Mr Vladimir Potanin's Interros and weakened that of the other major shareholder, United Company RusAl.

Troika Dialog said in a morning comment "We contend that the interests of minority shareholders are currently more aligned with those of Interros, which is seeking to negotiate a better deal with RusAl for itself and consequently other Norilsk Nickel shareholders, so we regard the news positively."

Troika added that "This would leave RusAl with weak negotiating positions in talks on the creation of a national mining champion in Russia."

Norilsk said Sunday evening that three of its subsidiaries had bought around 8.7% of its shares, a move that RusAl called unlawful. Norilsk in a statement, gave no reason.