Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Siemens Power Bid Opposed

Russia will block any attempt by Siemens or another foreign firm to gain control of Siloviye Mashiny, the country's main supplier of turbines for making electricity, a deputy minister said.

Allowing an overseas investor to control Power Machines "is hardly expedient," Deputy Industry and Energy Minister Andrei Dementyev said Wednesday. The 25 percent stake Siemens already owns "should suffice."

Siemens, Germany's biggest engineering company, still seeks to increase its stake in Power Machines, company spokesman Wolfram Trost said.

Unified Energy Systems, which controls Power Machines, plans to spend $26 billion through 2010 buying turbines and other power-generating equipment. UES owns 22 percent of Power Machines directly and controls a 30 percent stake held by Vladimir Potanin's Interros holding company.

Together with a stake held by UES's generation unit, TGK-1, the utility has a 25 percent blocking stake in Power Machines, which it plans to maintain after the engineering company sells new shares later this year.

Power Machines needs to raise $1 billion to expand output and invest in new turbine models. It plans to get half that cash from new share sales, another $200 million from asset sales and the rest from bonds and loans, Anatoly Chubais, the CEO of state-controlled UES, said Feb 13.

The utility's board will discuss on Friday auctioning its 25 percent stake as one lot after Power Machines carries out the share sales. UES, which is being broken up by July 2008 to foster competition, will seek a Russian buyer for the stake, given Power Machine's key supply status to the power industry.