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Metals giant divorce terms agreed

Mikhail Prokhorov, the President of Onexim, is ready to sell a stake of 25 per cent plus one share in metals giant Norilsk Nickel. The stake is worth $US 15.7 BLN according to Prokhorov. The news follows an offer made earlier on Wednesday by his ex-busine

Prokhorov owns 28 per cent of Norilsk, while Potanin has 25 per cent. The two men are the main owners of the metals giant and have been in the process of dividing up their assets since this spring.
Prokhorov has named his selling price at $US 293 per share plus a 12.5 per cent premium. Potanin has 45 days to close the cash-only sale.
But analysts say the current liquidity crisis could slow down the deal.
“One of the most important questions at the moment is about financing. The size of the deal is more than $US 15 BLN. If completed, the deal will be one of the largest in Russian history. Potanin certainly doesn’t have enough money in cash to buy Prokhorov’s stake. There is a great possibility that a consortium of banks will be formed, both Russian and even foreign ones. However, given the shortage of time and the world’s liquidity crisis, it’s not an easy thing to do,” business analyst Kirill Chuiko said.