Russian Unified Energy Systems to buy stake in Power Machines

Russia's state electricity monopoly Unified Energy Systems said Tuesday it wanted to buy a stake of 22.43 percent in engineering group Power Machines, a company that had been targeted for acquisition by Germany's Siemens AG.

UES said in a statement that the owner of Power Machines, the Interros conglomerate controlled by Vladimir Potanin, had agreed to transfer another 30 percent of the company to a vehicle that would manage it and UES' stake jointly, thus ensuring operational control of the company.

UES noted it already owns enough of Power Machines through a subsidiary for the 22.43 percent stake to give it a total holding over 25 percent, and thus a blocking minority.

UES' board will examine the management's proposal at its Sept. 30 board meeting, the electricity giant said.

A company owned by metals tycoon Oleg Deripaska had expressed an interest in buying an 80 percent stake in the engineering group after Siemens' bid was blocked on security grounds. As well as its main business, Power Machines also builds engines for nuclear submarines.