Federal Grid, RusHydro Decline on Rosneftegaz New Share Report
Federal Grid Co. and OAO RusHydro tumbled after Vedomosti reported state-owned Rosneftegaz may spend as much as 130 billion rubles ($4 billion) buying new shares of state energy companies.
RusHydro lost 3.2 percent to 78.89 kopeks by the close in Moscow. Federal Grid fell 5.7 percent to 18.07 kopeks, the weakest since April 2009.
Minority shareholders’ stakes may be diluted if new shares are issued, according to Alfa Bank analyst Alexander Kornilov and ING Groep NV’s Igor Goncharov.
“This is negative news for investors,” Kornilov said by phone. “This adds dilution risk for minority shareholders.”
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