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. Last Updated: 07/27/2016

Siemens to Opt Out on Machines

Siemens has no plans for now to seek a majority stake in Power Machines by acquiring billionaire Vladimir Potanin's holding in the turbine producer, a spokesman said Wednesday.

"A majority stake in Power Machines is out of the question at the moment," Siemens spokesman Wolfram Trost said. Siemens owns 25 percent of Power Machines.

Nina Dementsova, a spokeswoman for Potanin's Interros holding company, said Wednesday that Siemens had notified Interros late Tuesday of its intention to exercise its right of first refusal for the 30 percent stake held by Interros.

Power Machines will compete for $26 billion of contracts from the country's power utilities as they upgrade and expand generators in the next five years. Billionaires Oleg Deripaska and Alexei Mordashov received approval to bid for Interros' stake last month.

The government will block any attempt by Siemens, or any foreign company, to gain control of Power Machines, Deputy Industry and Energy Minister Andrei Dementyev said in March.

Siemens applied to the Federal Anti-Monopoly Service to buy the Interros stake, Dementsova said. The service has not received Siemens' application, spokeswoman Irina Romannikova said. Unified Energy System, which owns 25 percent of Power Machines, waived its right to Interros' stake. The national power utility plans to offer its stake to a group of investors for at least 5.4 rubles (21 cents) per share.

Deripaska, who owns United Company RusAl, has Federal Anti-Monopoly Service approval to buy as much as 82 percent of Power Machines. Mordashov, who controls Severstal, was cleared to buy 100 percent.