BlackRock may buy into Rusal

FUNDS BlackRock and Paulson may buy into Russia’s Rusal, valued at 17bn-22bn by banks for an initial public offering (IPO), but the aluminium giant had yet to win firm commitments from non- Russian investors, it has emerged. A banking source said on Friday that Rusal’s IPO organisers had valued the firm at 17bn-22bn. “Valuations differ widely,” he said; the highest was 30bn and the lowest was 15bn. A second source said more than five global investment funds, including BlackRock, Paulson and a Chinese fund, had given a preliminary agreement to take part in the IPO, which is off limits for ordinary investors. But the banking source said the organisers had so far not received any firm commitments from investors except for Russian state bank VEB, which planned to buy nearly a third of the 10% of shares on offer. “As of yesterday, only VEB showed firm commitment to buy Rusal’s shares during the IPO. Of course, the company wants to sell to as many investors as it can, but it so far remains wishful thinking,” the source said. Vedomosti business daily on Friday quoted industry sources as saying the company’s board had backed the proposed valuation range and that investment fund China Investment Corporation and BlackRock may take part in the IPO. The proposed valuation, based on recommendations of the IPO organisers, would make Rusal the world’s most expensive aluminium company. The market capitalisation of competitor Alcoa stands at 15,6bn, data show . Sources said Rusal planned to start pre-marketing on January 5, with the road show on January 11 and the pricing expected on January 21. Reuters