Jan. 24, 2010
The government of Guinea has taken United Co. Rusal Ltd. to court in the West African country, saying it's owed $860 million.
Mahmoud Thiam, the country's minister of mines, energy and hydropower, said Rusal was "not truly transparent about all the facts" in its Hong Kong initial public offering prospectus. If that's not corrected, Guinea may take additional court action to force Rusal to put $430 million of share-sale proceeds into an escrow pending a court ruling on the claim, which may rise to $1 billion.
The Guinean government may seize Rusal's assets in the country if the two sides fail to reach an agreement over a September court ruling invalidating a 2006 deal under which Rusal bought a local alumina refinery, the Post said. Rusal is appealing the decision.
"Rusal has fully disclosed all relevant details regarding Guinea in its prospectus and has nothing new to add," the Moscow-based company said in an e-mailed statement. "The company doesn't believe that any resulting liabilities will materially affect the group's financial position or its operations as a whole."
The government of Guinea has taken United Co. Rusal Ltd. to court in the West African country, saying it's owed $860 million.
Mahmoud Thiam, the country's minister of mines, energy and hydropower, said Rusal was "not truly transparent about all the facts" in its Hong Kong initial public offering prospectus. If that's not corrected, Guinea may take additional court action to force Rusal to put $430 million of share-sale proceeds into an escrow pending a court ruling on the claim, which may rise to $1 billion.
The Guinean government may seize Rusal's assets in the country if the two sides fail to reach an agreement over a September court ruling invalidating a 2006 deal under which Rusal bought a local alumina refinery, the Post said. Rusal is appealing the decision.
"Rusal has fully disclosed all relevant details regarding Guinea in its prospectus and has nothing new to add," the Moscow-based company said in an e-mailed statement. "The company doesn't believe that any resulting liabilities will materially affect the group's financial position or its operations as a whole."
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