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. Last Updated: 07/27/2016

Business in Brief

Celtic Rejects Severstal Bid

LONDON -- London-listed miner Celtic Resources Holdings said Tuesday that it had rejected a ?2.20 ($4.44) per share takeover offer from miner and steelmaker Severstal because it considered it too low.

"The board unanimously rejected this approach as it considered this price significantly undervalued the company and its prospects," a Celtic statement said. "Celtic shareholders are strongly urged to take no action in respect of their shareholdings." (Reuters)

IMF Sees Credit Impact Low

International Monetary Fund managing director Rodrigo Rato said Tuesday that tighter global credit markets will have a "very limited" impact on Russia.

"External financing" will be more difficult, though that will not have much of an effect on the world's biggest energy supplier, Rato said. One of Russia's biggest problems is its dependence on oil and gas exports.

"The need for Russia to develop a non-oil economy is becoming more self- evident," he said. (Bloomberg)

Sea Oil Exports Fall

Russian oil exports from major ports will fall by around 120,000 barrels per day in October to below three million bpd, mainly because of repairs at the port of Primorsk, a preliminary export schedule showed Tuesday.

The schedule said shipments would decrease to 2.92 million bpd from 3.04 million bpd in September. (Reuters)

Gazprom Denies Price Rise

Gazprom's natural gas export prices to Hungary are tied to a basket of energy products and the company cannot unilaterally raise them, the company said Tuesday, denying a media report that it was pushing to increase prices.

Gazprom is not in talks to raise the price of gas for sale to Hungary by more than 10 percent next year, as reported by Hungary's Nepszabadsag newspaper, the company said. (Bloomberg)

Severstal-Avto Net Jumps

Carmaker Severstal-Avto reported Tuesday a 96 percent year-on-year rise in first-half net profit and a 66.5 percent increase in revenues.

The company said its net income, calculated to international financial reporting standards, rose to $49 million, while revenues increased to $896 million in the period. The firm's earnings before interest, taxation, depreciation and amortization reached $111 million, up by 54 percent against the same period a year ago. (Reuters)

GM Launches Antara

FRANKFURT -- General Motors has begun building its Opel Antara sport utility vehicle in St. Petersburg and plans to produce 2,500 units there in 2008 to meet growing demand in the country, the company said Tuesday.

By the end of next year, Opel plans to have a new GM plant up and running in Shushary, southeast of St. Petersburg, the company said in a statement.

The plant will have production capacity of 70,000 cars per year with a staff of around 900. (Reuters)

UES Seeks $200M Loans

Unified Energy System announced Tuesday that it would raise 10 loans of 5 billion rubles ($200 million) each to help finance share buybacks in the course of its reorganization.

By Dec. 10, UES must buy back the shares of investors who voted against the amended reform program adopted by the board in March. (Reuters)

UES to Accept TGK-9 Bids

State-controlled utility Unified Energy System said Tuesday that it would accept offers for a 34 percent stake in power generator TGK-9 through bookrunner Troika Dialog until Oct. 15.

The stake, which is attributable to the government, consists of 1.933 trillion shares at 0.3 kopeks each, and can be purchased only as a single stake, worth 5.8 billion rubles ($232 million).

TGK-9 has a total installed capacity of 3,280 megawatts serving heat and power to the Perm and Sverdlovsk regions and the Komi republic. (Reuters)

Machines Wins $40M Order

Power Machines, part-owned by Siemens and billionaire Alexei Mordashov, won a 1 billion ruble ($40 million) order for a steam turbine and generator for city utility Mosenergo, the company said in a statement Tuesday.

Power Machines will supply the equipment for Power Plant No. 27 in the middle of next year, the company said. (Bloomberg)

Rambler Profit at $6.7M

Rambler Media, the British-registered owner of the Rambler Internet portal, said Tuesday that its first-half net profit was $6.7 million, compared with a net loss of $0.5 million a year ago.

Rambler said it had restated financial results for the first half of 2006 to exclude the television operation and include part of the provision for potential tax related charges of $2.6 million reported in 2006. (Reuters)

Uralsvyazinform Net Jumps

Uralsvyazinform, the dominant fixed-line phone network in the Urals Federal District, said Tuesday that profit jumped 57 percent in the first half on higher demand for mobile and broadband services.

Net income advanced to 1.38 billion rubles ($55.2 million) from 878 million rubles a year earlier, the company said in a statement. Sales climbed 21 percent to 19.1 billion rubles. (Bloomberg)

Raspadskaya Profit Soars

Raspadskaya, the country's second-largest producer of coal used in steelmaking, said Tuesday that profit jumped 78 percent in the first half as prices advanced for higher-cost washed coal, the company said Tuesday in a statement.

Net income increased to $90.4 million in the first six months of the year from $50.9 million a year earlier, the company said. Revenue rose 55.2 percent to $338.8 million. (Bloomberg)

Aeroflot Goes Off Alitalia

Aeroflot is not considering buying Italian airline Alitalia at the moment and is inclined to drop the idea entirely, deputy general director Lev Koshlyakov said Tuesday.

"Aeroflot is not considering buying Alitalia," Koshlyakov said.

Aeroflot has said it wanted to see new, more attractive terms before deciding whether to bid for the Italian company.

La Repubblica reported Tuesday that Koshlyakov said the Russian airline was willing to pay more than $1 billion to buy Alitalia. (Reuters, MT)

SGS Wins Pipe Safety Deal

SGS, the world's biggest goods inspector, said Tuesday that it won a contract from a consortium of Gazprom, E.On Ruhrgas and Nord Stream to ensure the safety of a gas pipeline construction project between Russia and Germany.

The contract, won jointly with TUEV Nord Group, a German technical safety tester, covers quality and safety checks on two pipelines, each 1,210 kilometers long. (Bloomberg)