HSBC is selected TAS’s adviser on its machine building holding

HSBC is selected TAS Group’s financial adviser on creation of machine building holding, Delo newspaper said today, citing the group’s co-owner Serhiy Tihipko. The holding will be anchored by Kryukiv Wagon (KVBZ: HOLD), where TAS holds 25%, and also include Dniprovahonmash (DNVM: BUY), 98% controlled by TAS, and Kremenchuk Steel Casting Works (KRST: N/R), 95% of which is owned by TAS and Privat Groups. The holding is expected to hold an IPO on the London Stock Exchange by 2011. Inna Perepelytsya: The announcement meets our expectations (see our January 28 report). We believe both railcar makers stand to benefit from closer ties to Kremenchuk Steel Casting Works, helping to secure casting deliveries, which we forecast to be insufficient to the CIS railway industry until 2009.