The FINANCIAL — A merger between Russian gold companies Polymetal International PLC and Polyus Gold International PLC is "not feasible now, or in the foreseeable future," a senior Polymetal executive said Monday.
"We are not talking with Polyus at all. Our [respective] shareholders are not talking to each other either," said Pavel Danilin, Polymetal's executive vice president for strategic development. "This merger is not feasible now, or in the foreseeable future."
Analysts have speculated that the two companies might be headed towards a merger after the February sale by billionaire Mikhail Prokhorov of a 37.8% stake in Polyus to two businessmen for $3.62 billion, according to Lukas I. Alpert, Borsa Italiana Spa.
One of the new Polyus owners, real-estate baron Zelimkhan Mutsoyev, also holds a minority stake in Russian fertilizer company Uralkali (URKA.RS), alongside Polymetal shareholder Alexander Nesis.
Polyus's primary shareholder, Suleiman Kerimov, helped found Polymetal before selling his stake in 2008. The company remains controlled by businessmen close to him. Mr. Kerimov is also the main shareholder in Uralkali.
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