Thursday 15 August 2013

Watchdog Probes Uralkali Share Sale Ahead of Market Collapse | Business | The Moscow Times

Watchdog Probes Uralkali Share Sale Ahead of Market Collapse | Business | The Moscow Times:

"The Federal Service for Financial Markets is looking at Uralkali's paperwork, which could give clues as to how shareholder Alexander Nesis quietly sold his stake just before an announcement by the company led to a collapse of the global potash market.

Uralkali announced a change in strategy in late July — a shift from higher prices to greater volumes — and pulled out of its joint venture with Belarussian potash producer Belaruskali. The move caused a double digit fall not only of the company's shares but also those of its competitors. Several days earlier, on July 26, the company announced that Nesis sold his 5.1 percent interest.

In an interview with Vedomosti, Uralkali's CEO Vladislav Baumgertner denied suggestions that Nesis had inside information on the announcement, the newspaper reported Thursday. Baumgertner said the company does not give shareholders any information that is not available to the public."

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