Norilsk Surges as Potanin Said to Seek 2% Buyback: Moscow Mover

OAO GMK Norilsk Nickel jumped to a one-month high after Vladimir Potanin’s Interros Holding asked the board to consider buying back as much as 2 percent of its stock, according to two people with knowledge of the request.

Norilsk added 1.9 percent to 5,387 rubles by 2:23 p.m. in Moscow, the highest intraday level since May 12.

Interros, which controls 28 percent of Norilsk, wants the board to look at various measures, including a buyback, to boost the capitalization of the world’s biggest nickel producer, the people said, declining to be identified because the information is confidential.

Interros also asked the board to have management start the process of canceling a 10 percent stake in Norilsk that its units hold after previous buybacks, the people said. Those affiliates may be liquidated, they said.

Norilsk may have shareholders vote on canceling the stock by the end of this year, Potanin told reporters in May.

The board will consider measures on supporting Norilsk’s capitalization at a June 28 meeting, according to a company regulatory filing late yesterday, which didn’t give details.

Anton Muravyev, an Interros spokesman, declined to comment, as did Alisa Fialko, a Norilsk spokeswoman. United Co. Rusal, which holds 25 percent of Norilsk, didn’t immediately comment.

To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net;

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

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.