Business in Brief
- By Unknown
- Jul. 01 2008 00:00
$370M Tire Firm Purchased
ST. PETERSBURG -- Gazprom's tire making unit agreed to buy unprofitable local competitor Amtel-Vredestein for around $370 million to almost double sales and create one of the world's top 10 tire producers.
Sibur-Russian Tires, the country's biggest tire maker, will be issued with 159 million new shares of Amtel-Vredestein, the No. 3 producer, valued at about $318.6 million, the companies said. (Bloomberg)
Power Machines Signs Deal
Power Machines, the country's biggest supplier of equipment for the electricity industry, said Monday that it signed a contract for more than 4 billion rubles ($171 million) to supply thermal equipment for a nuclear power plant.
The company, controlled by billionaire Alexei Mordashov, said it would send the equipment through 2010 to the Kalininskaya nuclear plant in the central Tver region. (Bloomberg)
BoNY Case Adjourned
Bank of New York on Monday tried to block the of use of U.S. racketeering laws in a $22.5 billion Moscow lawsuit filed by the Federal Customs Service.
The Moscow Arbitration Court adjourned the case over the bank's liability for illegal wire transfers until Thursday after a hearing Monday. (Bloomberg)
May Growth Slows to 7.7%
Economic growth slowed to 7.7 percent in May from 8.4 percent in April and stood at 8.4 percent in January to May, Deputy Economic Development Minister Andrei Klepach said Tuesday, news agencies reported.
"There was some gross domestic product growth slowdown due to seasonal factors," Klepach was quoted as saying. (Reuters)
MMK to Invest $1.8Bln
YEKATERINBURG -- Magnitogorsk Iron and Steel Works, or MMK, the country's third-largest steelmaker, said Monday that it would invest $1.8 billion to develop the Prioskolskoye iron ore deposit.
The planned investment, disclosed on the company's web site, is higher than the $1 billion that analysts had forecast would be required. (Reuters)
Cabinet Approves Budget
The Cabinet on Monday approved the government's budget for the next three years.
Total spending for 2009 will reach 8.81 trillion rubles ($380 billion), equivalent to 18.1 percent of GDP, according to the approved budget. (Bloomberg)
Reserves Procedure Changed
The Central Bank, holder of the world's third-largest gold and foreign exchange reserves, said Monday that it had changed the method of its reserves calculation to reflect market quotes of securities in its portfolio.
Previously it had counted securities of foreign issuers in its reserves by their amortized value, meaning price of acquisition plus accumulated interest. A breakdown by the new and previous methods showed the figure could differ by several billion dollars. (Reuters)
For the Record
CTC Media said Monday that it borrowed $135 million from a group of banks to help refinance its acquisition of broadcaster DTV Group. (Bloomberg)
The United Aircraft Corporation raised $200 million from its first-ever sale of bonds, arranger MDM Bank said Monday. (Bloomberg)