Berezovsky nominates candidates for the Aeroflot board

Published: 2/7/2000

The description of Boris Berezovsky as the 'comeback kid' may prove to be apocryphal, with the announcement of the candidates for the Aeroflot board due on the 9th February 2000. It appears from early reports that an entity, named ZAO Firma Foster and backed by Berezovsky, has mustered the 2% of outstanding shares required to put up three possible Berezovsky candidates for the Aeroflot board including: · Alexander Krasnenker, now General Director of struggling Vnukovo Airlines and formerly a director of Aeroflot; · Yury Dubov, Deputy General Director of LogoVaz, one of Berezovsky's companies; and · Alexander Pomichev, Chairman of Obyedinenny Bank, which is close to Berezovsky's interests Additional candidates on the Firma Foster list include Andreev, General Director of the FSVT, his deputy, Anatoli Bondarev, and, interestingly, the Head of Aeroflot's technical services, Yury Evdokimov, who is also the employees' representative on the current Aeroflot board. Reports, however, suggest that the additional candidates have been added to the list without their consent. Aeroflot's own management is proposing lists composed of its senior managers. The state, as 51% shareholder, has yet to reveal its favoured candidates. Foreign shareholders through their nominees (normally western banks holding stock on foreigners' behalf) will propose four potential candidates although, so far, only the name of David Hearne of Unifund has been confirmed. The success of Berezovsky's efforts to get representation on the board depends on a number of factors, not least of all the size of his own and other shareholdings. At best estimate, the size of Berezovsky- owned or controlled holdings are between 7-15%, although this rather aggressive move suggests he may have support elsewhere, at present undisclosed. The return of Berezovsky promises to re-ignite what has been one of the more bitter battles in the Russian corporate scene in the last few years and one that will become no less acrimonious, as Okulov endeavours to keep Berezovsky out of Aeroflot. The role of the government in the affair will be interesting to see. Okulov, seen firmly to be in the Yeltsin camp as his son-in-law, despite originally being a Berezovsky appointee, may find that Putin has a few debts owing to Berezovsky, who has been an active supporter of the acting President, through his TV station, NTV.

Article ID: 1396