Interpipe Will Control 60% Of DniproSpetsStal.

Viktor Pinchuk, Interpipe’s key owner, announced yesterday that the group will buy out the stake that now belongs to a Russian businessman Konstantin Grigorishyn and thereby consolidate 60% in the company (DNSS: BUY). Concorde Capital: We think this move by Interpipe will put an end to corporate conflicts that have been plaguing DniproSpetsStal. Interpipe and Grigorishyn have been jointly controlling a 60% stake in the company, and 34% belong to off-shore companies allegedly associated with Grigoriy. Surkis and Viktor Medvedchuk (the so-called Kyiv group). Grigorishyn has a history of corporate conflicts over a number of Ukrainian assets with the Kyiv group. His removal from DniproSpetsStal should result in the end of the conflict, in our view, this will benefit the company’s business. Furthermore, DniproSpetsStal under Interpipe’s control should produce a synergetic effect, as the company among other products makes stainless tube billets used by Interpipe’s pipe plants. In addition, DniproSpetsStal will likely benefit from Interpipe’s declared IPO planned for 2007-2008.