Metallic shock

21 October 2010 By Jason Bush

Oleg Deripaska and Vladimir Potanin, the Russian metals billionaires, are taking their fight to an EGM of Norilsk Nickel. The owner of RUSAL faces an uphill struggle in trying to regain some influence on the company’s board. A standoff would test the patience of minority owners.

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Shareholders of Norilsk Nickel will meet on Oct. 21 at an Extraordinary General Meeting, convened at the request of RUSAL, a 25 percent shareholder of Norilsk. RUSAL has called for shareholders to vote to dismiss the existing board of directors and elect a new one.

RUSAL has nominated nine candidates to the 13seat board, including three independent directors. Norilsk and Interros have recommended shareholders to vote against early termination of the board of directors. In the event of termination, they have recommended shareholders vote for the current members of the board.

RUSAL is engaged in a public dispute with both Interros Group and Norilsk's management. It has called for management changes and launched legal action to overturn the outcome of Norilsk's annual general meeting, held on June 28. It accused Norilsk's management of "manipulation" of voting, and "gross violations of corporate governance procedures", after losing one of its four representatives on Norilsk's board.

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