Rostelecom Preferred Shares Jump on Dividend Report

Preferred shares of OAO Rostelecom surged by their most in more than six weeks after Interfax reported yesterday that key shareholders would vote in favor of increased dividends for preferred holders.

The shares climbed 6.3 percent to 91.06 rubles at the 6:45 p.m. close in Moscow, its biggest increase since August 30. Rostelecom’s ordinary shares declined 0.9 percent to 137.30 rubles.

Rostelecom shareholders OAO Svyazinvest, Vnesheconombank and the Deposit Insurance Agency would support the amendment to Rostelecom’s dividend policy at a Nov. 10 general meeting, Interfax said, citing sources close to the shareholders.

“The news is clearly positive for Rostelecom preferred shares,” Konstantin Chernyshev and Konstantin Belov, analysts at UralSib Financial Corp., wrote in an e-mailed report today. “Should the proposal be accepted it will effectively triple the dividend pool for preferred shares in Rostelecom from 3 percent of the net income under Russian accounting standards to 10 percent.”

To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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