Oleg Deripaska who controls a quarter of OAO GMK Norilsk Nickel, is urging fellow billionaire Roman Abramovich to buy a stake in the Russian mining company as shareholders feud over management

Three people with the knowledge said that under Deripaska’s plan, Abramovich would buy about 6.9% of Norilsk from the company’s treasury stock at market prices. The Kommersant newspaper reported earlier that Abramovich could later increase that stake to 10%

Deripaska CEO of aluminum producer United Co Rusal, which owns 25% of Norilsk, wants Abramovich, the largest owner of steelmaker Evraz Plc to help him resolve a four-year feud with Norilsk shareholder Vladimir Potanin over strategy at the world’s largest nickel producer. Abramovich was an investor in Rusal until 2004, when he sold his stake to Deripaska.

Potanin controls the company through the 28% stake held by his Interros group and the 17% of treasury stock voted by friendly management, said Kirill Chuyko, head of equity research at Moscow based brokerage BCS. He could lose that control if Abramovich gains some of the treasury shares and the rest are retired, Chuyko said by phone today.

Source - Bloomberg

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