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AvtoVAZ Climbs to Four-Month High as Renault-Nissan Deal Nears

Dec. 10 (Bloomberg) -- OAO AvtoVAZ rose to the highest level in more than four months on expectations Renault SA and Nissan Motor Co. will sign a final accord this week to raise their holding in the largest Russian passenger-car producer.

AvtoVAZ jumped as much as 10 percent and traded up 7.1 percent at 16.901 rubles at 12:11 p.m. in Moscow, the highest since July 20. The stock surged 17 percent on Dec. 7.

Renault and Nissan will sign the agreement with state-run Russian Technologies Corp. by the middle of this month to boost its holding to about 50 percent, Interfax said last week. Russia’s Federal Anti-Monopoly Service approved the deal in September. Renault holds 25 percent in AvtoVAZ.

Renault and Nissan will jointly invest about $750 million to take a more than 67 percent stake in a joint venture with Russian Technologies that will in turn own 74.5 percent of AvtoVAZ, under a deal set to be completed by 2014, the companies said May 3.

Russian Technologies spokesman Valery Kartavtsev and Moscow-based Renault spokeswoman Oxana Nazarova declined to comment on the timing when called by Bloomberg.

To contact the reporter on this story: Yuliya Fedorinova in Moscow at yfedorinova@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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