Alchevsk Iron And Steel To Increase Charter Fund 13-fold

The company will hold an AGM on September 30 to consider whether to increase its capital by USD 198 mln to USD 213 mln through an additional share issue. The subscription for shares will be conducted from Nov 22, 2005 to Jan 22, 2006. Concorde Capital: The additional resources from the share issue will finance Alchevsk?s modernization program, which plans to increase steel production capacity from 3.7 mln mt to 7.4 mln mt by 2010. The side effect of the subscription, or what some may argue is the main objective of the issue, will be the dilution of minority shareholders who do not subscribe. Employees who own an estimated 1.5% will not represent a source of liquidity for the market any longer. For now, we have suspended our recommendation for ALMK.