×

Rusal Rejects Norilsk Offer of $12.8 Billion for Stake

UC Rusal CEO Oleg Deripaska told CNBC Tuesday that he rejected a $12.8 billion offer from Norilsk Nickel for Rusal's stake in the company.

US Rusal currently owns 25 percent of Norilsk, and the offer, made last week, would have cut that stake to 5 percent.

“There are only three companies in the world who have the real experience to mine above the polar circle. And Norilsk is one of them,” said Deripaska, speaking about the region of the Arctic. (Read the transcript of Erin Burnett's complete interview with Deripaska here).

Deripaska told CNBC there is a price at which he would sell the stake, but he would not confirm if that price is $16.5 billion to $17 billion dollars.

On Tuesday, the rating agency Standard & Poors left Norilsk Nickel's long-term BBB-rating and ruAA+ rating on a national scale on the CreditWatch list with a Negative outlook, following its offer to aluminum giant Rusal, according to RIANOVOSTI.

Deripaska, whose company Rusal is world’s largest aluminum company and whose net worth is $19 billion, is ranked the fourth wealthiest person in Russia, according to a newly released list compiled by Russia’s Finans Magazine.

Forbes has reported that Deripaska is a grandson by marriage of former Russian president Boris Yeltsin.

Deripaska also told CNBC that investors in Russia can count on returns, that the country is "safe." He said that all of Russia needs investors, not just Moscow.

2011 Finans List

Name
Net Worth
Age
Company
Vladimir Lisin $28.3B 53 NLMK
Mikhail Prokhorov $22.7B 45 Onexim
Alisher Usmanov $19.9B 57 Metalloinvest
Oleg Deripaska $19.0B 43 UC RUSAL
Roman Abramovich $17.1B 44 Millhouse LLC
Alexei Mordashov $17.1B 45 Severstal
Suleiman Kerimov $16.9B 44 Nafta Moskva
Mikhail Fridman $16.0B 46 Alfa Group
Vladimir Potanin $14.3B 50 Interros
Vagit Alekperov $10.9 B 60 LUKOIL

"If you look at the south of Russia, or Siberia, and parts of Unitel and the west, it's very welcoming," added Deripaska.

"Every government will do whatever it needs to do to protect investors' interests."