OREANDA-NEWS. March 11, 2009. AvtoVAZ has put on hold the takeover of IzhAvto and attributed problems in implementation of the transaction to the fact that a controlling interest in the latter is under bank pledge. Demand on the Russian market has been shrinking and makes the idea of boosting production capacities less and less attractive and it is this idea that prompted AvtoVAZ to begin talks about taking over IzhAvto.

“SOK has (IzhAvto) shares under pledge. This is not a single hour or a single day (necessary to resolve the problem). If there are no shares, who should we execute a transaction with?” a high-ranking source at AvtoVAZ said.