May 26, 2004. /Lesprom Network/. Hover Group (controlled by the Basic Element) won the court on the consolidation of Arkhangelsky shares. The Basic Element has been struggling with Arkhangelsky and Ilim Pulp owners for the control over their assets. However Oleg Deripaskaґs companies have not been witnessed keeping in contact with the companies attacking Arkhangelsky and Ilim Pulp. On May, 14 Moscow arbitration court satisfied the suit filed by the Cypriot offshore Hover Group (owns 0,04% of Arkhangelsky) and rated illegal the permission to consolidate 75% of Arkhangelsky shares granted to Pulp Mill Holding. Pulp Mill CEO and Arkhangelsky chairman of the board Heinz Zinner claims that Hover Group had the name of Sibirsky Aluminium Foil Corporation by August, 10 2001. He also stressed that the Basic Element used the have a similar name of Sibirsky Alumini. According to a Moscow daily Vedomosti, a source with Hover Group confirmed the suggestions made by Heinz Zinner, however declined further comments. The Federal agency on antimonopoly regulations Teimuraz Kharitonashvili is also confident that Hover Group ‘has to do with the Basic Element’. ‘This company has significant interest in the timber sector business. Unfortunately, each time they buy assets, scandals break out’ he said ‘ The Federal agency on antimonopoly regulations will undoubtedly file a counter-claim against the court’s decision, however we haven’t seen the decision yet’ ‘We are ready to fight a war against the Basic Element’ Heinz Zinner said. ‘However we can’t organize efficient defense, because the defendant to the case is the Federal agency on antimonopoly policies’ Prospekt analysis department chief Natalia Odintsova said that using minority shareholders is a common practice in corporate conflicts. In case of failure the company may claim its unawareness of the activities performed by the minority shareholder securing itself of financial and other risks. Lesprom.ru CEO Marina Pavlova said that Arkhangelsky and Ilim Pulp were attacked by minority shareholders earlier, and the Basic Element benefited from their activity, however it is impossible to prove the links between the minority shareholders and Oleg Deripaska’s companies. Marina Pavlova said, that Arkhangelsky shareholders faced the threat of losing the enterprise for the first time. ‘If the purchase of shares by Pulp Mill is rated illegal, the Basic Element will have more chances to buy the shares from the previous owners.’ Arkhangelsky is one of Russia’s leading enterprises producing cardboard, package and commodity pulp. In 2003 the enterprise produced 770 700 tons of pulp. The earnings reported in 2003 were estimated at RUR 72 billion, asset profits – RUR 780,7 million. About 60% of Arkhangelsky shares, Saint-Petersburg banking house – 20%, one of the founders of Continental Management. Continental Management owns 12,5% of Arkhangeslky shares.