OREANDA-NEWS. August 04, 2010. Andrey Klishas has been appointed in a new position of President - he will be reporting directly to the General Director at Norilsk Nickel. According to the company, the President will be responsible for the development and implementation of the corporate strategy of the company and the improvement of corporate governance, and for activities aimed at the growth of market capitalization. Furthermore, the President will oversee any potential merger & acquisition transactions.  According to a Norilsk press release, Andrey Klishas has held various positions at Potanin’s INTERROS Holding since June 1998, including: Legal Matters Director, Deputy General Director, General Director, Chairman of the Managing Board, Vice-President, Chairman of the Board, reported the press-centre of OTKRITIE Financial Corporation.

View: This appointment increases Potanin’s influence over Norilsk and raises the stakes in the ongoing battle for control of Norilsk between Potanin and Deripaska. Thus, we view it as negative. However, we do note that when one of these  oligarchs wins this battle – the stock’s price will increase substantially.

Valuation and Action: The stock trades on a 2010EV/EBITDA of 4.5x, which implies a 25% discount to peers.