OREANDA-NEWS. On February 29, 2008 Norilsk Nickel BoD began exchanging information in order to evaluate potential merger with Gazmetall, reported the press-centre of Interros.

"Negotiations are conducted in compliance with standard procedures, applied in the world. At present, the two sides hasn’t reached a merger agreement, but there is the desire to discuss the potential for any combinations or deals between the two companies", said MMC Norilsk Nickel Director General Denis Morozov.

The two parties will conduct due diligence, valuation of assets and prepare a report on possible format of the deal. UBS bank will consult Norilsk Nickel on the deal. Norilsk Nickel BoD received a proposal from Dresdner Kleinwort investment bank on a possible merger with Metalloinvest (which manages Gazmetall assets) and entrusted MMC Norilsk Nickel management to examine it. The BoD didn’t consider issues regarding shares buy-back.

If Norilsk Nickel management and its BoD decide to recommend shareholders to vote for the merger with Gazmetall, this issue would require approval of 75% of Norilsk Nickel stockholders.