Rusal Presses for Ouster of Board at Norilsk

MOSCOW—United Co. Rusal PLC called for the removal of OAO Norilsk Nickel's board, firing another shot in the battle over the mining company.

The Russian aluminum producer, owner of a 25% stake in Norilsk, said Thursday it has "significant concerns" about a deal in which Switzerland-based commodity trader Trafigura Beheer BV acquired an 8% stake valued at around $3.5 billion in Norilsk. The deal headed off Rusal's challenge to Norilsk's management's right to vote the 8% stake and gave Norilsk cash to help cover a bid for Rusal's shares.

Rusal said Thursday it fears that "the management of Norilsk may announce an additional purchase of their own shares by its subsidiary companies at the expense of the company's shareholders."

Rusal referred to comments made a day earlier by billionaire Vladimir Potanin, who owns just below 30% in Norilsk, as a basis for the concern that he and Norilsk management may try "to obtain a full control of the company."

Norilsk responded Thursday that Rusal's accusations were "groundless," moved by its desire "to bargain a higher price for its stake" in the miner.

Norilsk's management reduced Rusal's representation on the board in June and in October thwarted Rusal's attempt to remove the board.

"There is no logic for Rusal to call yet another shareholder meeting, as they have little chance to win," said UniCredit analyst Marat Gabitov.

On Wednesday, Mr. Potanin said his company "made a generous offer to Rusal," referring to a recent Norilsk proposal to buy Rusal's stake for $12 billion. "It creates the chance to resolve the shareholder conflict," he said. At current market prices, 25% of Norilsk is valued at $10.5 billion.

Mr. Potanin has been battling for control of Norilsk with Oleg Deripaska, chief executive and controlling shareholder of Rusal, who has sought to merge Norilsk with the big aluminum company.

Rusal has long said it has no plans to sell its stake in Norilsk, considering the arctic miner a strategic asset. But the aluminum producer seemed to soften its position Wednesday, hiring Bank of America-Merrill Lynch to help value its stake and formally announcing that management was evaluating the offer.