Rusal Gains Most in Three Weeks After Rejecting Norilsk Offer

(Bloomberg)--United Co. Rusal, the world’s largest aluminum producer, gained the most in three weeks in Hong Kong after rejecting OAO GMK Norilsk Nickel’s offer to buy a stake it holds in the Russian nickel mining company.

Shares of Rusal rose 3.9 percent to HK$12.80 at the midday- trading break in Hong Kong, its steepest gain since Feb. 14, after jumping as much as 5.5 percent. That compares with the 1.2 percent gain for the benchmark Hang Seng Index.

“I don’t think the market had been really expecting them to accept the offer so it probably wasn’t a real surprise, but it looks like the market is viewing the news slightly positively,” said Andrew Driscoll, the Hong Kong-based head of resources research at CLSA Asia-Pacific Markets. “Coupled with the sentiment in the market, it’s leading to a good move in the share price.”

Rusal rejected Norilsk’s offer to buy a $12.8 billion stake in the company, saying it wouldn’t be in the best interests of its shareholders.