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Gazprom to Merge OGK 2 and OGK 6
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Sunday, 04 Apr 2010

The Moscow Times reported that Gazprom would merge its stakes in two generating companies to consolidate its energy assets, pushing both generators' stock up to two year highs.

Mr Denis Fyodorov CEO of Gazpromenergoholding a subsidiary managing the gas giant's energy assets said Gazprom intends merge OGK-2 with OGK-6 to create a single company with 10 power stations and a capacity of 17.75 gigawatts.

OGK-2 said in a statement that as a first step, OGK-2 board of directors voted for Mr Alexei Mityushov CEO at OGK-6 to head up OGK-2 as well.

Investors welcomed the news, with OGK-2 shares increasing 2.9% to RUB 1.77 on the MICEX and OGK-6 shooting up 6.02% to RUB 1.37.

Rye Man & Gor Securities said in a note "We believe a synergy effect may be in fact realized through economies of scale and higher market power on spot electricity exchange."

It said "The unified company would own about 17.7 gigawatts of electric capacities, two times higher than an average OGK and its total market cap would exceed USD 3.3 billion."

(Sourced from The Moscow Times)

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