CEO Yevgeny Yakovlev and other top managers of Siloviye Mashiny are handing over the control of OMZ back to its executives and shareholders, the press release says.
A source close to the Siloviye-OMZ merger negotiations said earlier that after the termination of the merger agreement was announced, all Siloviye executives would resign from their positions on the merged company's top management.
The deal was announced last December. The merged company was expected to focus on engineering, manufacturing, and marketing of equipment for electricity-generating facilities, including nuclear power plants, coming out with comprehensive solutions in their construction and
upgrading.
The placement of additional OMZ shares by way of changing them for Siloviye Mashiny stocks began on May 6, 2004. On July 21, however, it became evident that the exchange of shares within the announced deal had not taken place.
Later on, it was reported that the German transnational Siemens had applied with Russia's Federal Anti-Trust Service for the purchase of a 71 percent stake in Siloviye Mashiny. A decision on the application is to be made by August 8, service officials say.
On July 23, Siemens and Russia's Iterros announced the establishment of a joint venture, to hold 71 percent of the Siloviye Mashiny stock. Interros is to own a 50%-plus-one stake in the new JV; Siemens, a 50%-minus-one stake.
