Interfax cited Mr Igor Kulgan UAG general director as saying that OJSC AvtoVaz might acquire LLC United Automobile Group which purchased OJSC IzhAvto's property during its bankruptcy sometime this week.

He said that "The transaction should be closed this week, adding that the price has been agreed upon".

He did not provide the cost of the transaction.

Mr Kulgan was quoted at the start of August as saying that AvtoVaz might buy UAG in two stages initially, the purchase of a 51% stake and then the remaining 49%. The acquisition cost for UAC was a point of discussion then between Russian Technologies, AvtoVaz and Sberbank. He said that "The upper limit is 3 billion rubles. He added that the transaction would commence after UAG had purchased OJSC IzhAvto's production assets in September.”

(Sourced from Interfax)