Translation of ArticleThis from a Russian speaking friend. There were a few words she could not translate in RED
The Severstal applies for actives of the Three Dialogue
The Severstal plans to redeem at the Three Dialogue of 18,7 % of actions Canadian High River Gold, extracting gold in Russia.
The three has redeemed 18,7 % of actions HRG as a result ?????????? actions of the Canadian company in December, 2009 Before Severstal owned 61,7 % of actions High River, after ?????????? its share was washed away to 50,1 %, informs RBC.
According to the source, possibility of the repayment of actions at the Three is connected with sharp growth of quotations HRG for last month. The three bought securities at the price of 38 Canadian cents for the action (as a result having paid 57 million Canadian dollars, or $54,5 million). On Wednesday of action HRG bargain at level of 76 Canadian cents for a paper, during the auctions on TSX in January their price reached nearby 98 Canadian cents. In its opinion, one of the reasons of sharp growth of quotations there could be appeared on the market in the beginning of January hearings that the Severstal declares the offer on the repayment of actions at ????????????( I think it's mean,the simple people can buy it,the minorer) at the price of 1 Canadian dollars for the action. However the Severstal did not do any offers.
The Severstal already made an attempt to finish a share in High River to 100 %, in the summer of 2009 declaring the offer on the repayment of actions at ???????????? at the price of 30 Canadian cents for a paper (with the essential award to the market). However following the results of this offer of the company it was possible to increase a share only from 57,3 % to 61,7 %. A number of minority shareholders has disagreed with a suggested price of the repayment and considered its underestimated.
According to the interlocutor of agency in the event that the Severstal will redeem 18,7 %-s' package at the Three as a result will receive a share in HRG about 70 % that would be for the company sufficient level, and the new offer to minority shareholders it is not planned to expose.
"Expansion without thinking about the price - already is characteristic feature of management of steel holding. So, now the price gold is high, quotations are blown up, and accordingly it will be possible to consider the transaction favourable to Severstal only in the long-term period. By the current moment - in more advantageous position there is a seller. Thus it is necessary to notice that the increase in a share from a test objective level to 70 % is not in our opinion so basic - the blocking volume of actions still remains at ????????????. Thus, we are inclined to regard the given news as negative for the Severstal share market", - the analyst of Veles considers the Capital Stanislav Fomenko.