United Co. Rusal, the world’s biggest aluminum producer, said it will hold an extraordinary shareholder meeting after a request by Sual Partners Ltd., it’s third-biggest holder, with which it’s in a legal dispute.
Rusal, facing an escalating shareholder conflict over Rusal management’s decision to hold on to 25 percent of OAO GMK Norilsk Nickel, will hold the meeting on Aug. 3, the Moscow-based company said in a statement to the Hond Kong stock exchange.
Sual, owner of a 15.8 percent stake in Rusal, wrote to the aluminum producer requesting the board meet to consider amending or introducing regulation to refer related party transactions to shareholders for approval.
Rusal said it doesn’t support the proposed resolutions and recommended shareholders vote against them at the meeting, according to the statement.
Rusal in April hired legal counsel to advise on arbitration brought by Sual to overturn trading contracts with Glencore International Plc. Sual is suing Rusal and Glencore as well as Rusal Chief Executive Officer Oleg Deripaska and his En+ Group, Rusal’s biggest shareholder, alleging a breach of a 2007 shareholder agreement for pushing through new contracts without its consent.
Viktor Vekselberg, who controls Sual with fellow billionaire Len Blavatnik, quit as Rusal’s board chairman in March during a dispute with Deripaska to have Rusal sell its 25 percent of Russia’s biggest mining company, Norilsk Nickel, allowing the aluminum producer to cut debt and pay dividends.