Rostelecom Biggest Micex Loser, Gainer on Vote: Moscow Mover
OAO Rostelecom’s ordinary shares led gains on Russia’s benchmark equity gauge while its preferred stock tumbled the most on the index before the state-run phone operator’s board votes on a minority buyout price.
Rostelecom jumped as much as 4.4 percent before adding 3.6 percent to 121.51 rubles by 3:20 p.m. in Moscow. The number of shares traded was 7 million, equivalent to about twice the three-month average. The preferred shares lost as much as 3.9 percent before trading down 3.2 percent at 91.35 rubles.
Rostelecom’s board will agree on a minority buyout price on March 27 and is “likely” to recommend buying common shares at 136.05 rubles apiece, based on a valuation by Ernst & Young, Interfax reported yesterday. That’s a 16 percent premium to yesterday’s closing price. The board may recommend purchasing preferred shares at 95.24 rubles, a 0.9 percent premium to yesterday’s close, Vedomosti reported today, citing unidentified company directors.
“The reported proposed buyout prices look unreasonable” because of the preferred shares’ discount to the common stock, UralSib analysts said in an e-mailed note today. Preferred shares pay “superior” dividends, they wrote.
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