Reports: BlackRock To Buy UC Rusal Shares At IPO - Update

(RTTNews) - New York-based asset management firm BlackRock Inc. (BLK: News ) intends to buy shares in Russian aluminum company UC Rusal during its initial public offering, reports said Friday. The IPO, which will be the largest in Russia, is likely to happen in late January. Rusal's board has valued the firm at between $17 billion and $22 billion and plans to raise about $2 billion from selling 10% of its stake through IPO in Hong Kong and Paris to reduce its debt burden. According to media reports, the proposed valuation will make UC Rusal the world's most expensive aluminium company. It is reportedly said that Russian state development bank Vneshekonombank, which provided Rusal with a $4.5 billion bailout loan in 2008, is planning to buy up to 3% of Rusal, while China Investment Corp. has also agreed to take part in the IPO. UC Rusal, created in March 2007 following the merger of RUSAL, SUAL and Glencore's alumina assets, incurred hefty debts in 2008 resulted from a slump in demand for aluminium as well as due to its almost doubled borrowings after Rusal bought 25% of Norilsk Nickel. BLK closed Thursday's regular trading at $239.65 per share on the New York Stock Exchange.