RusAl Denies Report Of Anglo American Reverse Takeover

Russia's United Company, the new aluminum producer to be created by the merger of RusAl, Sual Group and Glencore International, Monday denied a media report it's planning a reverse takeover of Anglo American PLC (AAUK).

"This information does not have any grounds," company spokeswoman Vera Kurochkina told Dow Jones Newswires.

"The strategy of the United Company targets strengthening its position as the leading global producer of aluminum and alumina by developing a number of bauxite mining, alumina refinery, aluminum smelting and power production projects," she said, adding: "No additional decisions concerning the strategy have been made so far."

A report in U.K. newspaper The Times Saturday, citing sources in Moscow, said Brian Gilbertson, the incoming chairman of RusAl, intends to diversify the firm in the mold of BHP Billiton Ltd.(BHP), and is speeding up RusAl's expansion plans to target Anglo American for a bid next year.

However, Kurochkina said any change in the company's strategy is a prerogative of the board of the United Company, which will be formed by April 1, 2007.

"Any changes in the strategy are possible only when the deal is closed," she added.

The United Company's executive committee structure was approved and is part of the signed agreement between the merger partners. It will include three representatives from Sual Group.

Appointment of the members of the executive committee of the United Company and its top managers is the sole competence of the General Director, Alexander.

The newly merged company will be the largest aluminum producer in the world, accounting for approximately 12.5% of global production.