Financial Times
Rusal tycoons clash in London court
Edited by : AL CIRCLE
2 min read
Viktor Vekselberg, the Russian billionaire, has filed a suit in London over an agreement by United Company Rusal to grant a long-term sales contract to global commodities trader Glencore, ratcheting up a battle with rival shareholder, Oleg Deripaska.
The move takes the clash between Mr Vekselberg and Mr Deripaska to London’s Court of International Arbitration less than a month after Mr Vekselberg resigned as chairman of Rusal’s board, claiming management had dragged the aluminium producer into heavy indebtedness and “deep crisis”.
According to a person close to one of Rusal’s shareholders, Sual Partners – the investment vehicle owned by Mr Vekselberg and his business partner Len Blavatnik – is taking legal action over two contracts worth $47bn to sell aluminium and alumina directly to Glencore, which also owns a 8.75 per cent stake in Rusal.
The person said the contracts were signed in breach of Sual’s veto rights against the deal. “Sual Partners is seeking to terminate the contracts, declare them invalid and recover damages,” the person added.
The suit was filed against Rusal, Glencore and Mr Deripaska, who is Rusal’s biggest shareholder and its chief executive.
Sual Partners declined to confirm or deny whether the suit had been filed. Rusal, Glencore, and Mr Deripaska all declined to comment, citing confidentiality surrounding the proceedings.
The suit comes after a very public blow-up between Mr Vekselberg and Mr Deripaska last month over the company’s governance and strategy.
Mr Vekselberg had backed selling Rusal’s 25 per cent stake in Norilsk Nickel back to the nickel miner at a premium to the market price, in a deal that would have enabled Rusal to pay off its $12bn in debts and begin paying dividends. But Mr Deripaska refused, insisting Norilsk was a strategic asset for Rusal and continuing a bitter corporate war for the nickel miner against a rival metals tycoon, Vladimir Potanin.
Mr Vekselberg had also insisted the supply contract to Glencore be offered to other bidders in an open tender, and had voted against the deal when it was first forwarded for board review in November.
The contract, which granted Glencore more than 60 per cent of the Rusal’s total exports, goes against attempts to get Rusal to sell 60 per cent of its products directly by 2015, cutting out middlemen, a person familiar with the situation said.
The move takes the clash between Mr Vekselberg and Mr Deripaska to London’s Court of International Arbitration less than a month after Mr Vekselberg resigned as chairman of Rusal’s board, claiming management had dragged the aluminium producer into heavy indebtedness and “deep crisis”.
According to a person close to one of Rusal’s shareholders, Sual Partners – the investment vehicle owned by Mr Vekselberg and his business partner Len Blavatnik – is taking legal action over two contracts worth $47bn to sell aluminium and alumina directly to Glencore, which also owns a 8.75 per cent stake in Rusal.
The person said the contracts were signed in breach of Sual’s veto rights against the deal. “Sual Partners is seeking to terminate the contracts, declare them invalid and recover damages,” the person added.
The suit was filed against Rusal, Glencore and Mr Deripaska, who is Rusal’s biggest shareholder and its chief executive.
Sual Partners declined to confirm or deny whether the suit had been filed. Rusal, Glencore, and Mr Deripaska all declined to comment, citing confidentiality surrounding the proceedings.
The suit comes after a very public blow-up between Mr Vekselberg and Mr Deripaska last month over the company’s governance and strategy.
Mr Vekselberg had backed selling Rusal’s 25 per cent stake in Norilsk Nickel back to the nickel miner at a premium to the market price, in a deal that would have enabled Rusal to pay off its $12bn in debts and begin paying dividends. But Mr Deripaska refused, insisting Norilsk was a strategic asset for Rusal and continuing a bitter corporate war for the nickel miner against a rival metals tycoon, Vladimir Potanin.
Mr Vekselberg had also insisted the supply contract to Glencore be offered to other bidders in an open tender, and had voted against the deal when it was first forwarded for board review in November.
The contract, which granted Glencore more than 60 per cent of the Rusal’s total exports, goes against attempts to get Rusal to sell 60 per cent of its products directly by 2015, cutting out middlemen, a person familiar with the situation said.
Previous article
VAL seeks long-term coal linkage from Orissa
Next articleAlcoa Announces Aluminum Cuts as Production Gains
Grow with
AL Circle
