Nov 04, 2004. /Lesprom Network/. The acquisition of 20% of Arkhangelsky shares from Promstroibank by the Basic Element is one of the concessions the Basic Element made in connections with the scandal over Ilim Pulp assets, which is likely to cause a new boost in the hostile intrusion in the activity of one of the most successful timber enterprises of Russia, deputy Vladimir Krupchak, ex-chairman of the board of Arkhangelsky said.
However the corporate ‘war’ between Ilim Pulp and the Basic Element was stopped not in accordance with the court decision and the strict compliance with the ‘law dictatorship’, but due to mutual pressure and concessions, which makes the standoff look more like a criminal war, Vladimir Krupchak said.
‘This shows that in this country there’re no legal conditions of solving corporate conflicts, and any other company lacking financial or administrative resources can face the threat of corporate annexation’ he stressed.
As Lesprom.ru reported earlier, in line with the reached agreement, Promstroibank transfers 20% of Arkhangelsky shares to Continental Management, cedes its stake in Continental Management and receives 25% of Ilim Pulp shares with the possibility to increase the stake to 50%. Owner of Continental Management Oleg Deripaska stopped the conflict with Ilim Pulp and will now deal with Arkhangelsky pulp and paper enterprise only, Promstroibank SPB co-owner will co-own Ilim Pulp with Vneshtorgbank.