Euroset: Usmanov & Fridman together
You might have thought that after the battle of the billionaires at Norilsk Nickel, Russia’s oligarchs might try to steer clear of each other in the boardroom for a while.
Not Alisher Usmanov (above left). On Friday, Megafon, the phone company he controls, finalised a $1.1bn deal to buy half the largest handset retailer Euroset.
The other half 
will belong to rival operator VimpelCom, where the biggest shareholder is fellow billionaire Mikhail Fridman (below left). Continue reading »
Russia: a new oligarch court drama
Russia faces a new drama involving the authorities and a billionaire accused of a criminal offence who claims, in his defence, to be the victim of a political vendetta.
The star of the show this time is Alexander Lebedev, a former KGB agent turned businessman and Kremlin critic, who owns British newspapers headed by The Independent and the London Evening Standard, as well as Novaya Gazeta, an opposition-minded Russian newspaper that focuses on official corruption.
The alleged offence is far more colourful than the usual tax fraud charges levelled against oligarchs. Lebedev is charged with hooliganism over a television punch-up that was watched by millions (see after the break). This one could run and run. Continue reading »
Guest post: oligarch’s case shows value of knowing who you’re dealing with
By William Scott-Gall of Kroll
As the judgement in the Boris Berezovsky vs. Roman Abramovich case at London’s Commercial Court has shown (with victory for Abramovich) silent partnerships based on oral agreements can lead to unintended financial and reputational consequences. Abramovich may have won, but he has been forced to disclose uncomfortable details about his business practices, and investors have learnt of the extent to which business in Russia is reliant on krysha or protection. Continue reading »
Berezovsky-Abramovich: why the fuss?
One of the most expensive court case in legal history came to a close on Friday, after a London judge rejected Boris Berezovsky’s $6.5bn claims against fellow Russian oligarch Roman Abramovich.
While the case has captivated the UK and British tabloids, back home in Russia interest in the trial has been decidedly more subdued.
Abramovich/Berezovsky: Russia the loser
But Berezovsky is far from being the only loser. Russian business has suffered another damaging assault on its reputation. By shining a light on the ugly inner workings of Russian capitalism in the 1990s, the trial will serve as a warning to investors doing deals with oligarchs – beware of the past, it may come back and bite you. Continue reading »
Russian equity: good to be free?
Who owns the Russian equity market and how does ownership affect company performance? A new research note from Troika Dialog sheds some light.
The short answer to the first question is, the state, which is the single largest player with 30 per cent of equity ownership. This compares with a free float of 27 per cent owned by institutional and private investors. The answer to the second question is a bit more complex. Continue reading »
Megafon: stake sale and IPO
After years of squabbling, an amicable parting of ways between Megafon shareholders appears to be close on the horizon. The Russian mobile operator announced on Friday that it had secured a total $4.5bn in financing from Sberbank, Gazprom and western lenders, paving the way for Megafon’s management and biggest shareholder, Alisher Usmanov, to buy out rival oligarch Mikhail Fridman’s stake in the business.
A sale of the 25 per cent stake (held through Altimo, the telecoms arm of Fridman’s Alfa-Group) is expected to speed along Megafon’s long-awaited IPO which could now take place in the second half of this year if everything goes accordingly. Continue reading »
[video] The spat undermining Rusal
The Russian aluminium producer’s net profit for 2011 fell by more than 90 per cent after a $1.4bn writedown on the value of its 30 per cent stake in Norilsk Nickel. Lex discuss the implications for the investors of the determined pursuit of Norilsk by Rusal’s controlling shareholder Oleg Deripaska.
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