Roman Abramovich buys Norilsk Nickel stake to end power feud

Russian billionaire Roman Abramovich agreed to buy 7.3 per cent of OAO GMK Norilsk Nickel, as the two biggest owners of the world's top supplier of the metal seek to end a four-year feud over control of the company.

Abramovich's Millhouse investment company will acquire the stake in Moscow-based Norilsk as part of a settlement between shareholders United Co Rusal and billionaire Vladimir Potanin, Hong Kong-listed Rusal said yesterday. The purchase price wasn't disclosed.

Potanin, whose Interros Holding owns 28 per cent of Norilsk, will take over as chief executive, Rusal said. Rusal, controlled by billionaire Oleg Deripaska, owns 25.1 per cent of Norilsk.

Norilsk rose in Moscow trading, valuing the company at about US$30 billion and making it the only gainer in the 30-stock Micex Index. Rusal rose 0.7 per cent to HK$4.57 in Hong Kong.

Potanin and Deripaska have battled publicly - and in the courts - for control of Norilsk since May 2008. The dispute, which involved some of Russia's richest men, mired the country's biggest mining company in lawsuits, as well as constraining investments.

Rusal has rejected at least three offers to sell out of Norilsk since October 2010, rebuffing an US$8.75 billion bid from Norilsk for 15 per cent in September last year.