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BasEl owner Deripaska quits battle for Power Machines - paper

MOSCOW, November 27 (RIA Novosti) - Russian billionaire and BasEl owner, Oleg Deripaska, has withdrawn his offer to buy a 25% blocking stake in Power Machines from electricity giant Unified Energy System [RTS: EESR], said a leading business daily.

Kommersant said Alexei Mordashov, the owner of Severstal [RTS: CHMF], Russia's largest steelmaker, remains the only buyer. Mordashov, who already holds a 30.4% share in Power Machines, will now consolidate the controlling stake in the heavy machinery manufacturer. He has bought 25% for $486 million, which is only $2 million above the starting price and 26.5% more than the market value, the paper said.

Mikhail Pak, analyst of Kapital Investment Group, told Kommersant, "the deal can hardly be called transparent, and its outcome must have been decided in advance."

Kirill Chuiko of Uralsib Financial Corporation said Mordashov's victory was predictable in September when he acquired 30.4% of Power Machines from Interros Holding. Deripaska also tried to acquire the stock but failed. After the deal, Mordashov changed the head of Power Machines and struck a strategic alliance with another major shareholder, Siemens (25%).

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