Chinalco not to buy RUSAL's IPO shares: report

Oct. 12, 2009 (China Knowledge) - Aluminum Corporation of China, the country's largest nonferrous metal producer also known as Chinalco, will not take a stake in UC RUSAL when the Russian firm launches an initial public offering on the Hong Kong Stock Exchange, the South China Morning Post reported today. An unnamed Chinalco official was quoted that the company decided not to participate in the IPO, though it had considered subscribing to the shares. A Russian newspaper reported earlier that Chinalco's listed unit Aluminum Corp of China Ltd<601600><2600> was in talks with UC RUSAL over the issue. The Russian firm plans to list 10% of its shares on the Hong Kong Stock Exchange and expects to raise between US$1.5 billion and US$2.5 billion. Controlled by Russian magnate Oleg Deripaska, UC RUSAL has more than US$16 billion in debt. Reportedly, it must first settle its debt restructuring plan with more than 70 international and Russian banks, which is expected to be completed by the end of this month. Copyright © 2008 www.chinaknowledge.com