Sibur-Amtel deal is off -- for now, at least

ERJ staff report (DS)

London -- Amtel-Vredestein NV has advised the London Stock Exchage that its proposed deal with Sibur Russian Tyres is terminated, due to certain contractual points remaining unfulfilled beyond the end-September deadline.

Amtel-Vredestein said it is, "actively considering a number of options and it is expected that a further announcement will be made in due course." Sibur Russian Tyres was unavailable for comment as this story went to press.

The contract between the two companies required that execution of subscription letters in respect of US$100 million of new shares in the Company in addition to the US$50 million new shares to be subscribed by Sibur Holding would be in place by the end of September. In a statement, A-V said, "As this and some other conditions have not been fulfilled or waived by [the deadline of mid-day on 30 Sept], the Agreement has automatically terminated in accordance with its terms."

One option would have been for the two companies to agree to extend the deadline. It is not clear why this was not done.

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Stock market announcement from Amtel-Vredestein