Millhouse Asset Management will manage, among others, the stake held in Aeroflot and, possibly, Domodedovo Airlines (175 words)

Published: 10/30/2001

A group of key shareholders in Sibneft, led by Roman Abramovich, the single largest shareholder out of the 88% which is collectively controlled by the group, has established a company specifically to manage the group's diverse holdings, including a substantial minority position in Aeroflot. It is unclear whether the company will manage the disputed Abramovich stake in Domodedovo Airlines, the purchase of which the government is reported to be considering annulling, after accusations that the sale, through which Abramovich acquired control of the company through management's exercise of options, was illegal. The new company, called Millhouse Asset Management, is to be headed up by Sibneft president Eugene Shvidler, and will have assets of $4 billion, according to reports. Analysts at Moscow-based United Financial Group (UFG) interpret the reasons behind the creation of Millhouse as being a combination of concerns among minority shareholders at Sibneft that there was a need to separate the diverse holdings of Abramovich from Sibneft and also to consolidate cash flows from the various investments.

Article ID: 2868