RusAl Demands New Norilsk Board

United Company RusAl, the world's largest aluminum producer, on Thursday demanded the re-election of the board of Norilsk Nickel, saying it believed it to be controlled by a rival shareholder.

The demand is the latest twist in the disagreement between RusAl, holder of a stake of 25 percent plus two shares in Norilsk, and Interros, the investment vehicle of Vladimir Potanin, which holds around 30 percent of the Arctic miner.

Norilsk's board is chaired by Potanin and comprises nine directors, three of whom represent RusAl. Interros also has three official representatives, although RusAl has argued that at least one of the three remaining independents is also affiliated to Potanin's company.

"RusAl believes that the current board, fully controlled by Interros, is incapable of reversing a slide in Norilsk Nickel's market value," it said.

Interros declined to comment.

Norilsk's shares closed up 6.3 percent at 4,897 rubles, outperforming a 2.9 percent rise on the MICEX Mining and Metals Index.