OAO RusHydro fell for the first time in four days after IFC Metropol cut Russia’s largest hydropower company to hold from buy on bets the company will issue new shares.
RusHydro declined 2.3 percent to 84.53 kopeks by the close in Moscow. The stock has slumped 13 percent this year.
The company may issue additional shares, which state-controlled OAO Rosneftegaz will buy for about 41 billion rubles ($1.3 billion), Kommersant reported yesterday, citing people familiar with the discussions.
“The potential issue is unnecessary and could put pressure on the stock price,” Metropol analysts led by Konstantin Reyli said in an e-mailed research note today.
An investment plan approved by the company’s board last month is “substantially higher than our previous forecast,” they wrote.
-- Editor: Alex Nicholson