Eurasian Natural Resources Corp.’s two corporate brokers have quit as advisers to the ferroalloys producer that’s facing an investigation by the U.K. Serious Fraud Office.
“After many years with the company, Morgan Stanley and Deutsche have stepped down in recent weeks,” ENRC said in an e-mailed statement today. The London-based mining company is reviewing potential replacements, it said.
The SFO on April 25 began a formal probe into allegations of fraud, bribery and corruption relating to the activities of the company or its subsidiaries in Kazakhstan and Africa. ENRC shares slid 55 percent last year amid bribery allegations and as anti-corruption groups questioned the company’s dealings in the Democratic Republic of Congo.
ENRC founders Alexander Machkevitch, Patokh Chodiev and Alijan Ibragimov together with the Kazakh government are considering making an offer for the company, Machkevitch said on April 19. The group, which owns 54 percent of the company, has until May 17 to make a proposal.
Officials from Deutsche Bank and Morgan Stanley declined to comment.
ENRC shares fell 3.9 percent to 291.5 pence by the close in London, valuing the company at about $5.81 billion.