RusAl Blocks Talks on Spinoff at Norilsk

Norilsk Nickel's board was unable to discuss spinning off OGK-3 or selling stakes in other power generators after United Company RusAl, which owns 25 percent in Norilsk, objected to the plans.

The management of Norilsk will continue discussions with shareholders on what to do with the assets, spokeswoman Yelena Kovalyova said Wednesday.

Norilsk management proposed spinning off OGK-3 and selling minority stakes in other generators, including TGK-1, TGK- 5. It also planned to keep 28 percent of TGK-14 to power its projects in Siberia. Norilsk proposed an energy spinoff last year that was blocked by former shareholder and previous chief executive Mikhail Prokhorov.

RusAl said it supported selling the assets "in a manner that provides all shareholders with a proportionate share of the consideration received." The proposed plan "will not provide suitable liquidity" and will leave Vladimir Potanin's Interros Holding "de facto control" of the new structure, RusAl said.