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UPDATE: Norilsk: Turned Down Glencore's Nickel Marketing Bid
Aug 13, 2010 10:28CST
Source:SMM

MOSCOW, Aug 13 -- Swiss commodities trading house Glencore International AG has been unsuccessful in an informal bid for the marketing rights to all of the nickel produced by OAO Norilsk Nickel (GMKN.RS), Norilsk said Thursday.

A spokeswoman for Norilsk, the world's largest nickel miner, said Glencore's informal proposal has been studied by the company, but that it didn't succeed as it would have had a "negative economic and non-economic impact on Norilsk."

Norilsk's two largest shareholders, Interros Group and United Co. Rusal PLC (0486.HK), are currently embroiled in an ownership battle for the miner. Glencore's subsidiary Amokenga Holdings owns a 8.62% stake in Rusal.

Glencore declined to comment.

Rusal, which has repeatedly criticized Norilsk's marketing and sales policy, said it isn't aware of Glencore's move.

"It had nothing to do with us", Rusal's spokeswoman said.

Such a proposal, informal or otherwise, would likely be routine for a trading house like Glencore, which also markets nickel and other commodities for many producers worldwide.

Glencore is also exposed to the nickel business through its stake in world's fifth largest producer, Xstrata PLC (XTA.LN).

Norilsk, which markets and sells its nickel, declined to provide any details of the offer, but said the decision on Glencore's informal offer was reached several months ago.

 

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