German industrial conglomerate Siemens AG has notified Interros about the intention to execute its right of first priority and buy out 30.6% in Power Machines, which is also called Silovye Mashiny.
Siemens currently owns 25% in this company of Russia and it was prevented from stepping up to majority ownership two years ago. The analysts say Siemens may share control over Power Machines with Basic Element that is also eyeing this stake of Interros. Interros announced yesterday Siemens had notified it about the intention to buy out 30.4% in Power Machines under pre-emptive right. According to sources with Interros, Siemens applied to the Federal Antimonopoly Service (FAS) for a respective sanction, but the FAS bureaucrats claimed they received no application so far.
“We are not considering a majority stake in Power Machines at the moment,” Reuters quoted a spokesman for Siemens as saying. But the letter of September 3 that Siemens addressed to Burbot offshore (holder of 30.4% in Power Machines on behalf of Interros) says that Siemens would like to execute the-preemptive right under the agreement reached with Interros. It is the second time that Siemens is willing to build the majority stake in Power Machines. First time the consortium attempted to do it in 2005 but faced opposition of President Putin, who refused to yield the control over a strategic enterprise to foreigners.
According to the sources with state bodies, the standing of the government hasn’t changed, but Siemens’ desire to acquire 30.4% in Power Machines doesn’t mean it will emerge as the principal owner. The sources say Siemens will resell the stocks to Basic Element of Oleg Deripaska and the respective agreement has been attained already. (kommersant.com)