Court Prohibits The SPF From Participating In NFER's EGMs.

The Nikopol city court ruled that the State Property Fund is not allowed to attend the Nikopol Ferroalloy (NFER: SELL) EGMs scheduled for June 14, 21 and 28. Concorde Capital: These EGMs are being sponsored by Privat Group in an effort to prevent the sale of NFER to Russian investors, which would deprive the group of any hope of gaining control over the plant. The court ruling effectively means that these EGMs will not be held. In our view, any actions taken by potential Russian buyers and Privat Group in regard to NFER will have little effect before the dispute between the state and Interpipe over the 50%+1 stake in NFER Interpipe acquired in 2003 for only USD 77 mln is resolved in court.