RusAl, the world's largest aluminum producer and a core shareholder of Russia's Norilsk Nickel, has rejected Norilsk's offer to buy a 20% stake in the nickel giant for $12.8 billion, RusAl said late on Thursday.
"The board of the company carefully studied the analysis of the situation provided by the board's committee on Norilsk Nickel matters and approved the committee's recommendation to reject the proposal to sell the company's 20% stake set out in the letter," RusAl said in a statement.
The current offer was valid until March 4. Last December Norilsk made an initial offer to buy RusAl's 25% stake in the metals and mining company for $12 billion.
Norilsk President Andrei Klishas said Norilsk had no more plans to make offers to RusAl.
"Norilsk management will continue working in the interests of all shareholders and employees, implementing programs to improve capitalization and social programs. We are urging UC RusAl to take part in this positive work," Klishas said in a statement.
RusAl and Interros, the investment arm of Russian billionaire Vladimir Potanin, have long been at odds over control of Norilsk Nickel. RusAl says the Norilsk board is dominated by officials linked with Interros after an AGM last summer, where RusAl lost one board seat, while Interros increased its representation.
RusAl's board will start talks with other Norilsk shareholders and management to resolve the conflict after an extraordinary shareholders meeting in Norilsk Nickel on March 11, initiated by RusAl to re-elect current Norilsk board, a source told RIA Novosti.
A source in SUAL Partners, through which RusAl chairman Viktor Vekselberg owns RusAl's shares, has said that Norilsk's offer reflected a fair price for the company and threatened to sell its 15.8% stake in the aluminum company. Analysts have said Norilsk's offer is 30% above the market value.
Billionaire Mikhail Prokhorov, another RusAl shareholder, has also urged RusAl to accept the offer.
MOSCOW, March 4 (RIA Novosti)
