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Bendukidze and Potanin to merge their assets
MOSCOW - Kakha Bendukidze , the owner of United Machine-Building Plant (OMZ) and Vladimir Potanin, president of Inteross which owns Silovye Auto Factory, have announced plans to merge their assets in the machinery construction industry. If followed through, the move announced at a press conference on Dec. 17, could lead to the creation of a new company, capable of generating a turnover in excess of $1 billion by the end of 2004 and become the biggest machine manufacturer in Europe and southeastern Asia. Potanin noted that the merger has been in the making for the past two years. Top managers of the merging companies are expected to sign a memorandum in the nearest future, which will outline all details of the proposed deal, including a $10 million compensation penalty for forestalling the deal, Kommersant said, citing a source closed to the merger-deal negotiators. According to the proposed merger terms, the OMZ will arrange additional 100 percent share emission, about 50 percent of which will be exchanged for 100 percent shares of Silovye. If everything goes well, the merger is expected to be concluded in November 2004.
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