MOSCOW, November 11 (RIA Novosti) - The sale at auction of Russian company Diamond World was cancelled due to a possible takeover by Russian diamond monopoly ALROSA, the Russian Economic Development and Trade Ministry said Friday.
"The cancellation of the sale of Diamond World stock is connected with government plans to use this asset to increase ALROSA's authorized capital," the ministry said.
In 2004 Diamond World, which was founded in 1999, sold diamonds worth $21.8 million. The company's shareholders are the Russian Federal Agency for the Management of Federal Property, with a 52.37% stake, and ALROSA with 47.36%.
ALROSA, one of the world's largest diamond producers, is Russia's biggest company prospecting for diamond deposits and producing, cutting, and selling diamonds.
