Zaporizhstal Announces Buy-Back Offer.

The company’s (ZPST: Susp) supervisory board today approved an offer of $0.37/share, which is 28% below the current market price and 69% below the market price that prevailed before the company announced its dilutive share emission (~$1.20). Applications for the share buy-back from minorities will be accepted by July 22, 2006. The PFTS, which suspended trading in ZPST shares on July 3, is scheduled to review ZPST’s case on July 10. Andriy Gostik: The price is far below what minority shareholders and Ukrainian investment banks would consider acceptable, so we expect legal challenges aimed at blocking the share issue to continue. The low offer makes it likely that the PFTS will extend its suspension of trading in ZPST shares, and we do not rule out that the PFTS might de-list the stock. Concorde Capital, together with Ukraine’s other leading brokerages, continues to oppose the low buy-out price and lobby Zaporizhstal for better treatment of minority shareholders.