Norilsk Nickel could be buying back shares worth up to $5 billion in a bid to prevent a merger with a rival firm, according to Vedomosti business daily.

The buyback is not yet approved but it is believed to be helping top shareholder, Vladimir Potanin.

Norilsk Nickel is co-owned by Mr Potanin and Mikhail Prokhorov who are engaged in a protracted split of their various assets.

Mr Prokhorov agreed to sell a 25 per cent stake to aluminium giant, United Company RUSAL, which is controlled by Oleg Deripaska.

According to reports from Reuters, the move is the first step towards a full merger of the firms but Mr Potanin is thought to be against the idea as he would lose his decision-making role in the combined firm.

Mr Potanin did not find $15.7 billion in December to outbid UC RUSAL for Mr Prokhorov's stake although the company has funds capable of a buyback.

Meanwhile, reports from RosBusinessConsulting indicate that Mr Prokhorov and Mr Deripaska have been nominated to the Board of Directors of Norilsk Nickel by ONEXIM.

Source:

Russia's Norilsk eyes $5 bln share buyback, 31/01/08
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSL3142527120080131

Nominees for Norilsk Nickel Board of Directors revealed, 31/01/08
http://www.rbcnews.com/free/20080131095921.shtml

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