The Wall Street Journal has been digging deeper into the metals warehouse logjam issue, and discovered that both Alcoa and Rusal may be beneficiaries of the situation due to the physical premiums they collect when end-users are forced to go direct to producers for metal so as to avoid queues.
According to the WSJ the aluminium makers have reaped as much as $1.4bn in revenues from higher fees due to the logjam.
The story then suggests this strips the credibility from their objections to proposed LME rules to ease the bottleneck. Read more
Implied copper volatility has risen sharply over the past month, according to Goldman Sachs:
…not that the levels are in any way unprecedented. Read more
Alternate working title: Opec-cartel style
We’ve already heard from Oleg Deripaska on the matter. And we’ve started to see the consequences hit Rio Tinto and BHP Billiton. But the latest “we must rein in supply” Opec-cartel style talk, actually emanates from Glencore CEO Ivan Glasenberg.
Bloomberg has the story ( hat tip to Reuters’ John Kemp) and it offers few cracking paragraphs to say the least: Read more
There’s an enlightening interview with Oleg Deripaska, chief executive of Rusal, in the Telegraph this Monday (h/t Neil Hume).
Turns out the metal tycoon believes aluminium may do better than expected this year, largely because much of the excess capacity that has plagued the industry has finally been cut back. Read more
When the chief executive of UC Rusal, Oleg Deripaska, takes to the pages of the FT to air his frustrations about his industry, you’ve got to sit up and listen. Especially when he concludes that output caps are needed to overcome the problems.
Rusal, of course, is one of the world’s top aluminium producers and Deripaska, it turns out, wants output caps because he is worried about the strange anomalies which are gripping his market. Read more
A transcript of a secretly taped conversation between Boris Berezovsky, and Chelsea Football Club owner Roman Abramovich in a Paris airport could spell bad news for tycoon Oleg Deripaska, who is facing a U.K. lawsuit over his ownership position in Russian aluminium company Rusal. The Wall Street Journal reports that the transcript seems to identify a connection between him and Michael Cherney—the Uzbekistan-born businessman suing Deripaska for about £2.5bn for allegedly cheating him out of a stake in the company. Deripaska denies that he and Cherney were ever partners or that he has outstanding debts to him. The transcript has emerged as part of evidence in another High Court tussle, this time between Berezovsky and Abramovich. It reflects a conversation between the two in a private lounge at Le Bourget airport in December 2000, which was taped by Badri Patarkatsishvili, a close friend and business partner of Berezovsky who died in 2008.
Oleg Deripaska, head of Russia’s UC Rusal aluminium group, has agreed to buy back a 17% stake in Strabag, the Austrian construction company, for €373m ($520m), in a sign he has weathered the crisis that just 18 months ago threatened to topple his empire, reports the FT. Strabag said on Monday that Deripaska had agreed to exercise an option to repurchase the 17% stake and extend an option to buy back a further 8% until 2014. Deripaska, Russia’s richest man until the financial crisis exposed the leverage propping up his business, was forced last year to surrender his 25% stake in Strabag to its other shareholders but retained an option to buy it back.
Norilsk Nickel, the world’s biggest nickel producer, said on Thursday it had rejected an offer from Glencore, to buy the company’s entire nickel production in a deal that would have given the world’s largest commodities trader control of nearly half the global trade in the metal, reports the FT. Norilsk said the deal would have had “negative economic and non-economic effects” on the company. Disclosure of the offer comes amid a power struggle between Norilsk’s two key shareholders, Oleg Deripaska and Vladimir Potanin, for control of the company. Reuters reports on Friday that Potanin has raised $2bn from state bank Sberbank to repay his 2008 state rescue package, after the bank joined last month in a $4.5bn refinancing for Deripaska.
Renaissance Capital, the Moscow-based investment bank, is opening an office in Hong Kong in expectation that a wave of Russian companies will choose to sell shares in the city. The move comes five months after Rusal, the aluminium group controlled by Oleg Deripaska, became the first Russian company to list on the Hong Kong stock exchange, the FT reports.
Oleg Deripaska, the Russian billionaire, is preparing to float a second resource company in Hong Kong just three months after the controversial $2.2bn initial public offering of Rusal, his aluminium group, reports the FT. Strikeforce Mining and Resources aims to raise as much as $200m this month, according to people close to the deal, in what would be the second Hong Kong share sale by a Russian company.
Oleg Deripaska, the Russian metals magnate, has pledged to donate to charity two-thirds of the stock bonus he received for helping to secure the $2.2bn initial public offering of his UC Rusal aluminium company in Hong Kong this January, says the FT. Mr Deripaska, one of Russia’s richest men, said the proceeds of the bonus shares, which can be sold after a two-year lock-up period, would go to his Volnoye Delo charitable fund.
Oleg Deripaska, chief executive of UC Rusal, will pocket bonus shares worth more than US$60m for his role in preparing the company’s Hong Kong and Paris listings in January, the FT reports. The bonus amounts to 8.5 per cent of the Russian aluminium producer’s net profit last year. Lex says this amounts to looting the company.
You probably had better things to do over the festive period than plough through the 1,141 page IPO prospectus for Oleg Deripaska’s UC Rusal.
Which gives us the opportunity to highlight page 3 of the document. Read more
For the last year Oleg Deripaska has been a man on a mission.
And after months of wrangling with regulators, UC Rusal, his heavily indebted aluminium company, looks finally to have won approval for a $2bn float in Hong Kong and Paris come January. Read more
Oleg Deripaska is likely to have to give up his attempt to launch a $2bn IPO of his UC Rusal aluminium group before Christmas after the Hong Kong Stock Exchange announced a further delay on Monday. The move meant the offering of up to 10% of the company’s shares would have to be pushed back to next year, possibly as late as April. On Monday night the company had not made an official announcement as Deripaska and other billionaire shareholders in Rusal discussed whether to postpone the listing until next year.
Oleg Deripaska on Thursday told the FT it was “no problem” if the $2bn IPO of UC Rusal, the Russian tycoon’s aluminium group, was delayed into next year. Russia’s former richest man brushed off concerns that the decision by the Hong Kong Stock Exchange to delay until next week a crucial ruling on the listing could push the flotation into 2010, and said he was not under pressure from Rusal’s 70-plus creditor banks to list before the year’s end. Rusal this week concluded a landmark restructuring of its nearly $17bn debt, including $7.4bn owed to international banks.
An ambitious plan to create one of the world’s biggest mining groups through the merger of up to five Russian companies has been proposed by two billionaire tycoons. Oleg Deripaska and Vladimir Potanin, the two biggest shareholders in Norilsk Nickel, have proposed the merger as the groups seek to restructure tens of billions of dollars in debts. The other companies include Metalloinvest, the iron ore and steel group owned by Arsenal Football Club shareholder Alisher Usmanov; Evraz Group, the steel group part owned by Chelsea Football Club owner Roman Abramovich; Mechel, another steel group; and Uralkali, the potash producer.
Oleg Deripaska, the Russian billionaire, is to return as chief executive of Rusal, one of the world’s biggest aluminium producers, after being re-elected by the board, the company said Sunday. Deripaska, Rusal’s majority shareholder, returns to the more direct hands-on role comes as the company battles to survive the global credit crisis and plummeting revenues due to the drop in commodity prices. It is seeking to restructure $14bn of debt it owes to foreign and Russian banks. The move also comes amid talk of reviving plans for a three-way merger between Rusal, Norilsk Nickel, the world’s biggest nickel miner, and Metalloinvest, the steel and iron ore group, to create a metals and mining giant on a par with BHP Billiton.
Russia’s state development bank yesterday approved $10bn in refinancing for the country’s cash-strapped oligarchs. This came as the first step of a $50bn government bail-out that could redraw Russia’s business landscape. As part of the package, Oleg Deripaska’s UC Rusal holding company was set to receive a $4.5bn loan. It will use it to repay in full a syndicate of western banks, including RBS and Merrill Lynch, that Mr Deripaska has been scrambling to pay by a Friday deadline.
The High Court this week began hearing the case of Tajik Aluminium Plant v Abdukadir Ganievich Ermatov. While it has failed to make many UK headlines (as yet), its tale of intrigue, corruption and even a potential murder is topping newspapers across most of central Asia.
Not only is it expected to price-in as one of the UK’s most expensive cases ever (some estimate at about £90m in legal fees), it could offer an intriguing insight into the affairs of some of the world’s most secretive business characters. For one, the case is linked to the familiar name (of late) of Oleg Deripaska via his control of Russian aluminium group Rusal. Read more
A letter to the Times (since transmuted into a front page story):
Sir, Since your paper – along with your sister publication The Sunday Times – has made much out of what may or may not have happened at a private gathering of my friends this summer in Corfu, I thought I should make the following observations. I am surprised that you focus on the fact that one of my guests, Peter Mandelson, is a friend of another, Oleg Deripaska. Not once in the acres of coverage did you mention that George Osborne, who also accepted my hospitality, found the opportunity of meeting with Mr Deripaska so good that he invited the Conservatives’ fundraiser Andrew Feldman, who was staying nearby, to accompany him on to Mr Deripaska’s boat to solicit a donation. Since Mr Deripaska is not a British citizen, it was suggested by Mr Feldman, in a subsequent conversation at which Mr Deripaska was not present, that the donation was “channelled” through one of Mr Deripaska’s British companies. Mr Deripaska declined to make any donation. I mention this because it turns out that your obsession with Mr Mandelson is trivial in light of Mr Osborne’s actions. I also think it ill behoves all political parties to try and make capital at the expense of another in such circumstances. Perhaps in future it would be better if all involved accepted the age-old adage that private parties are just that. Read more
Oleg Deripaska, the Russian billionaire, said Thursday he was “relinquishing” his 10% stake in Hochtief, the German construction group, less than a week after the global financial crisis forced him to divest a big stake in a Canadian car parts maker to creditors, reports the FT. Deripaska’s Basic Element holding company said it was exiting Hochtief because of the steep drop in its value since he made the acquisition in May 2007 and that it was “a prudent financial move.” Basic Element said the shares had been transferred to Commerzbank but declined to say whether Deripaska had relinquished the shares because of a margin call. The move is another indication of the growing pressure on Deripaska’s vast empire – which spans construction, cars, banking and aluminium. On paper, Deripaska is Russia’s richest man with an estimated fortune of $28bn, but he is also highly leveraged. The WSJ meanwhile reports that Deripaska is under investigation by US and UK authorities in connection with a $57.5m wire transfer last year.
The ￡3.75bn stock market listing of Russian mining giant Rusal is in the balance as key executives from the world’s biggest aluminium producer are locked in talks with the UK regulators over the disclosure of potential legal liabilities the company may face, reports the Observer. Rusal needs the green light from the FSA, which assesses the suitability of companies to raise money on the public markets, before proceeding with a London float. But sources suggest there are several potential sources of legal disputes, including a law suit filed by oligarch Michael Cherney against against Rusal chairman Oleg Deripaska over a deal under which Cherney sold his shares to Deripaska.
Oleg Deripaska, owner of Russia’s biggest aluminium maker, has acquired a stake in General Motors of just under 5 per cent, say two people with direct knowledge of the matter. The Russian tycoon’s stake in the world’s largest car company, worth more than $900m at Tuesday’s share price, is said to be a personal investment and unrelated to Gaz, the vehicle manufacturer he controls. Mr Deripaska, named Russia’s second-richest man by Forbes magazine, acquired the shares last year. The GM stake is a “strategic investment” and unrelated to Basic Element [Mr Deripaska’s holding company],” said one of the two.
Billionaire tycoon Oleg Deripaska, the head of Russian automaker GAZ, is interested in Ford’s premium British brands Jaguar and Land Rover, reports Reuters, citing German business weekly WirtschaftsWoche. The magazine said Deripaska would also be a possible bidder for Volvo should Ford decide to sell the Swedish brand. Another firm owned by Deripaska, Basic Element, agreed in May to invest $1.54bn in Canadian auto parts supplier Magna.
If ever the FSA and the City lobby urging tighter London listing conditions for foreign companies needed more ammunition, it came in the form of a long article in Friday’s Wall Street Journal.
In a report on Russian billionaire Oleg Deripaska’s $1.54bn investment in Magna International, the Canadian auto parts maker vying to buy Chrysler, the Journal detailed the problems the aluminium tycoon faced in his dealings with US authorities, including their revocation of his US visa last year. Read more
A company controlled by Russian billionaire Oleg Deripaska is to invest about $1.54bn in Magna International, the Canadian auto-parts maker vying to buy a stake in Chrysler. The deal will give Russian Machines, which holds an interest in the Gaz Group – Russia’s second-largest automotive company – 18 per cent of Magna’s subordinate voting stock. Frank Stronach, Magna’s chairman, and his family will maintain control through multiple voting shares. DaimlerChrysler is expected to decide on a preferred bidder for Chrysler next week. Magna has teamed up with Onex, a Canadian private equity group which is competing against Blackstone and Cerberus Capital Management. Kirk Kerkorian’s Tracinda has also expressed interest.