Amtel delays shareholder meeting - Sale still possible

ERJ staff report (DS)

Moscow -- Amtel Vredestein said it is delaying a shareholders' meeting that had been scheduled for the second half of January. The company had intended to use the meeting to submit to shareholders plans for the sale of its subsidiary, Vredestein Banden BV. However, in a statement, the board said Amtel Vredestein, "is not at this stage in a position to submit a decision on the disposal of its subsidiary Vredestein Banden B.V. (“VBBV”) to the general meeting for approval."

In the meantime, information leaked from Sibur Russian Tyres indicated that the company is going ahead with plans to acquire some or all parts of the Amtel-Vredestein empire. The Russian Newspaper Vedomosti said Sibur is preparing to raise up to $600 million in bonds to acquire the debts of Amtel-Vredestein.

A spokesman for SRT confirmed that the company is planning to issue some bonds in connection with a possible deal with Amtel-Vredestein, but declined to confirm the amount or the precise purpose of the bonds. The spokesman added, however, "We have almost reached the agreement with banks (still several procedures left)."

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Press release from Amtel (about shareholders' meeting)

Russia's Sibur to buy $600 mln of Amtel debt-paper Vedomosti, via Reuters (Russia)