X5 Rises on Reported Loan Offers

X5 Retail Group rose the most since going public in 2005 on a report that two local banks offered loans to nine retailers as part of a government effort to revive the credit market.

X5, the country's largest supermarket company, jumped 25 percent in London trading, adding about $700 million to its market value. The grocer is among companies being offered loans at annual interest rates of 15 percent to 18 percent by Sberbank and VTB Group, Kommersant reported Monday.

The retailer's stock plunged by more than two-fifths last week as after it said Oct. 6 that it would delay payments to suppliers who sought price increases. Two days later it offered to purchase supplier inventories to ease liquidity troubles.

"The fact that the government is allocating funds for food retailers could push some investors toward buying X5 shares because its debt risk is getting lower," Sobinbank analyst Alexander Shelestovich said. "X5 will be the first to get help because it's the biggest and has a large presence in Russian regions."

X5 added $2.60 to $13.10, reducing this year's decline to 62 percent. The company had $2.32 billion of debt as of June 30.

X5 declined to comment on the report.

Billionaire Mikhail Fridman, who controls X5 parent company Alfa Group, met with President Dmitry Medvedev on Oct. 6, according to the president's web site.