By Lukas I. Alpert
MOSCOW--A merger between Russian gold companies Polymetal
International PLC (POLY.LN) and Polyus Gold International PLC
(PGIL.LN) is "not feasible now, or in the foreseeable future," a
senior Polymetal executive said Monday.
"We are not talking with Polyus at all. Our [respective]
shareholders are not talking to each other either," said Pavel
Danilin, Polymetal's executive vice president for strategic
development. "This merger is not feasible now, or in the
foreseeable future."
Analysts have speculated that the two companies might be headed
towards a merger after the February sale by billionaire Mikhail
Prokhorov of a 37.8% stake in Polyus to two businessmen for $3.62
billion.
One of the new Polyus owners, real-estate baron Zelimkhan
Mutsoyev, also holds a minority stake in Russian fertilizer company
Uralkali (URKA.RS), alongside Polymetal shareholder Alexander
Nesis.
Polyus's primary shareholder, Suleiman Kerimov, helped found
Polymetal before selling his stake in 2008. The company remains
controlled by businessmen close to him. Mr. Kerimov is also the
main shareholder in Uralkali.
Write to Lukas I. Alpert at lukas.alpert@dowjones.com
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