Polyus Gold refuses to buyback, approves purchase of KazakhGold

/REUTERS, Moscow, September 30, 08/ - Russian largest gold producer Polyus Gold rejected to redeem shares and approved the purchase of Kazakhstan competitor KazakhGold. "The Board of directors of Polyus Gold decided amid rising costs of company shares more than 40 % in recent times not to buy back and save money for the other projects" - reads the message on the site of group of Mikhail Prokhrorov Oneksim. Polyus securities rally the participants explained by expectation of redemption: two weeks ago, the general director of Polyus Yevgeny Ivanov said that the management considers a buyback to view the fall in share price and determine the parameters of the Board of directors. The Board of directors Tuesday did not support the management, but approved the purchase of KazakhGold. "The deal was supported unanimously. Its implementation will make Polyus Gold the leading gold-mining company. The transaction will be structured in such a way that 70 % of the value of the shares KazakhGold will be paid in Polyus Gold shares and 30 % - in cash" - Prokhrorov said, quoted in a message of Oneksim. A day before Polyus offered $7.95 and 0.298 share of Polyus for each share of Kazakh companies. On the whole, he estimated this proposal at $14.73 per share or $391 m. for 50.1 %. [2008-10-01]