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Russian steel tycoon buys blocking stake in Power Machines

Electricity monopoly Unified Energy System (UES) of Russia has finalized a deal to sell a blocking stake of 25% plus one share in Power Machines to Highstat Ltd.

Cyprus-registered Highstat Ltd., owned by Russian steel tycoon Alexei Mordashov, made the highest bid for the proposed stake on Thursday, offering 11.8 billion rubles ($486 million), or 5.42 rubles per ordinary share, approximately 25% above the market price. Mordashov already holds a 30.4% share in Power Machines. The Russian electricity giant will spend the income to cover a deficit in funds for a number of investment projects and to set up reserves for its restructuring program. Unified Energy System decided to sell the blocking stake in Power Machines late in March 2007, and ruled that it be sold to a private Russian strategic investor late in August. Power Machines, Russia’s leading heavy machinery manufacture, is currently owned by financial holding Interros, Unified Energy System and German electronics and engineering giant Siemens. (