Advertisement

ENRC brokers quit as bid deadline looms

Embattled miner Eurasian Natural Resources Corporation was further hit by bad news after two its brokers, Deutsche Bank and Morgan Stanley, resigned from their roles.

Embattled miner Eurasian Natural Resources Corporation was further hit by bad news after two its brokers, Deutsche Bank and Morgan Stanley, resigned from their roles.

The news comes two weeks after the Serious Fraud Office launched a criminal investigation into the Kazakhstan- and Africa-focused company.

The board are interviewing potential replacement brokers, with sources suggesting Credit Suisse will join Lazard as an adviser to the independent committee of directors at the company.

Advertisement - Article continues below

On Thursday morning the company reported first quarter results that were knocked back by weaker commodity prices and severe winter weather, and admitted it had yet to hear further details of the potential offer from major shareholder Alexander Machkevitch.

Russian billionaire Suleiman Kerimov bought a 2.86% stake in the group earlier in the week, taking his share in the company to 3.05%.

But this is dwarfed by the combined 43.8% held by Machkevitch and fellow oligarchs Patokh Chodiev and Alijan Ibragimov, who are considering a joint offer alongside the Kazakh government. FTSE 250 miner Kazakhmys also owns 26%.

On April 19th Machkevitch said he and his associates were 'reviewing a number of potential opportunities which include the possibility of making an offer for ENRC' and was given a deadline by the takeover panel of May 17th to make a bid.

Since that time, the Serious Fraud Office has confirmed that it is focusing on "allegations of fraud, bribery and corruption relating to the activities of the company or its subsidiaries in Kazakhstan and Africa".

Shares in ENRC were down 3.9% at 291.5p at 14:52 on Thursday.

OH

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

OBR: UK house prices could fall by 12% next year
House prices

OBR: UK house prices could fall by 12% next year

The Office for Budget Responsibility says UK house prices could fall by as much as 12% next year. John Stepek looks at how likely that is.
14 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
We’re spending more than at any time since World War II – how will we pay it back?
UK Economy

We’re spending more than at any time since World War II – how will we pay it back?

With the UK spending vast sums on stimulus measures, this year’s budget deficit will be greater than at any time since World War II. The big question,…
14 Jul 2020