ENRC concern on Kazakhmys stake

June 6, 2008

June 6th (Steel Guru) – Bloomberg reported that Eurasian Natural Resources Corp, the Kazakh producer of ferrochrome, iron ore and aluminum is down for a fourth day in London trading on speculation that Kazakhmys Plc will sell its stake in the company.

Ms Elly Williamson spokeswoman for ENRC said Kazakhmys the nation’s biggest copper producer was unable to sell the 14.6% stake for 180 days from ENRC’s entry to the London Stock Exchange on December 12 following an initial public offering. While Mr David Simonson spokesman for Kazakhmys said the stake isn’t a long term holding a quick decision won’t be made.

Mr Sam Catalano an analyst at Macquarie Bank Ltd in London said. “It’s a sensible move, though, because the market will not fully value the minority ENRC stake as part of Kazakhmys. He said that the market is concerned that there would be a large amount of stock suddenly available.”

London-based ENRC fell 48 pence or 3.5% to 1,319 pence at the close in London the lowest since May 9th 2008. The stock dropped 5.3%.

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