Privat Defends Pivdenny Iron Ore Share Issue.

The Higher Economic Court rejected a suit by the State Property Fund seeking to cancel a pending share issue by Pivdenny Iron Ore (PGZK: BUY). The suit was initiated by the fund last year, when the state was considering reversing the 2004 privatization of a stake in PGZK. The court ruled that since the fund has no stake in PGZK, it had no right to challenge the share emission. Andriy Gostik: The outcome was fully expected, as re-privatization of iron ore mines has long been off the government’s agenda. PGZK’s controlling shareholder, Privat group, can now complete the share issue, presuming it reaches an agreement with another major shareholder, Smart Group. The issue would more than triple PGZK’s charter fund.