Alrosa, the secretive state diamond monopoly, is seeking to
buy back oil and gas assets Geotransgas and Urengoy from VTB for
$1 billion, planning to pay $600 million from its own pocket.The company, which handed the two companies to VTB during
the crisis of 2008-2009 in a repo deal, plans to develop them
but would also be open to a sale.”I am ready to sell these assets any time when I am offered
… $1 billion,” Andreyev told journalists on Monday.Andreyev also said that the company’s revenue rose 2.7
percent to 66 billion roubles ($2.13 billion) in the first half
of 2011, according to International accounting standards.Alrosa’s earnings before interest, taxes, depreciation and
amortisation (EBITDA) jumped 74 percent to 36 billion roubles in
the first six months of 2011, he said, adding that its EBITDA
margin hit a record high of 54 percent.In the whole of 2011 Alrosa, the biggest rival to global
giant De Beers, seeks to post $5 billion in revenues and a $2
billion EBITDA, which would be “enough to finance all our
projects excluding iron ore and gas (projects),” Andreyev said.
($1 = 30.92 Russian Roubles)
(Writing By Andrey Ostroukh; Editing by David Cowell)
* Discussions with CEOs can empower compliance officers* Strategy makes CEOs more accountable for proceduresBy Suzanne BarlynOct 14 (Reuters) - Chief executives and top managers will
be seen more on the front lines when Securities and Exchange
Commission representatives show up in brokerage offices for
exams and tests.The Securities and Exchange Commission say they are
involving the higher ups as a way to get more respect for
chief compliance officers.To start with, the agency is changing the way it handles
its routine compliance exams by requiring the involvement of
securities firm executives so they cannot leave the details
entirely to compliance officers.Top managers recently began meeting with SEC examiners to
answer questions during regular onsite visits, Kevin Goodman,
associate regional director of examinations in the SEC’s Denver
office, told Reuters. Those meetings will continue to be a
regular part of exams, he said.This is a departure from past practice, when chief
compliance officers were typically the agency’s main contact
points during examinations. It was the role of compliance
officers to field any questions and arrange meetings with
higher-ups when needed.For other executives, preparing to speak with regulators
about these issues should help reinforce a firm’s compliance
culture at the highest level of management, Goodman said.”The process encourages executives to really listen to what
the CCO needs to carry out an effective risk and compliance
program,” Goodman said. Agency examiners will also ask
executives about risk management practices, he said.The change could help bolster the role of compliance
officers. Compliance experts say that in some firms, the head
of compliance has the executive title, but not the authority or
support from top executives to carry out the many policies and
procedures that regulators require.In the worst cases, top executives might ignore or even
fire the compliance officer for alerting them to a problem the
firm needs to address, compliance professionals say. Among the
thornier issues compliance professionals say could lead to
retaliation against a CCO are reporting that an executive is
running a lucrative outside business without the firm’s
permission, or recommending termination of a top-producing
broker who routinely sells unsuitable investments to clients.Requiring chief executives to participate in routine SEC
examinations “makes them more accountable,” says Guy Talarico,
Founder and Chief Executive Officer of Alaric Compliance
Services LLC, a New York-based consulting firm. “You don’t
want the entire burden falling on the shoulders of the CCO.”Routine SEC examinations don’t happen frequently.
Examiners visit each of the nearly 11,000 investment advisers
registered with the agency about once every 11 years, according
to a recent SEC study. But that doesn’t diminish the
seriousness of the process when examiners actually do arrive.In the past, the SEC could talk to a chief executive, but
often did not unless they had a special reason — clarifying
something a CEO said for example — ostensibly sending the
message that CEOs weren’t on the hook for a firm’s compliance
culture.Preparing for the questions examiners may ask helps engage
senior management in a firm’s overall compliance process, says
Lori Richards, former director of the SEC’s Office of
Compliance Inspections and Examinations. Prepping for a broad
question about how the firm meets its fiduciary obligations
could help focus an executive on a firm’s potential conflicts
of interest and how they’re disclosed to investors, she said.Richards, based on her experiences, doesn’t expect the
meetings to resemble a hard-core investigation or drag on all
day. A 90-minute conversation is probably what executives can
expect, said Richards, now a principal at
PricewaterhouseCoopers LLC in Washington, D.C.And simply speaking in broad terms about compliance won’t
be enough to satisfy examiners, she said. An effective
compliance program “will have to exist in reality,” for
examiners to walk away satisfied, she said.The new emphasis on executive input doesn’t mean the agency
is out to get executives, said Goodman.”Executives are not expected to know every detail, but
examiners will be considering whether they’re actively involved
in compliance and risk management,” said Goodman.
Oct 14 (Reuters) - Shares of Walter Energy rose for
a second day on Friday on reports that the U.S. coal mining
company is the target of a takeover.The Australian newspaper reported that BHP Billiton , the world’s largest mining company, is
considering a $6 billion bid for the company. It cited no
sources.On Thursday, the British newspaper, The Independent, said
BHP and other mining giants were interested in acquiring
Walter, which has large reserves of steel-making metallurgical
coal.BHP declined comment and there was no immediate comment
from Alabama-based Walter.The company’s shares rose 12 percent on Thursday and were
up 6 percent on Friday morning. In afternoon trading, they were
up 3.2 percent at $77.61.Analyst Lucas Pipes, of Brean Murray Carret & Co, said the
price rise was clearly linked to the market talk that Walter
was a target.He noted U.S. coal producer Peabody Energy and
European steelmaker ArcelorMittal had just
received final approval to go ahead with their joint
acquisition of Australian miner Macarthur Coal .”That indicates there’s still a lot of demand for met coal
reserves and Walter falls into that category,” Pipes said.Other U.S. coal stocks rose on Friday on macro-economic
issues, analysts said. Alpha Natural Resources was up
3.7 percent to $21.43, Arch Coal was 2.9 percent higher
at $17.26 and Peabody Energy rose 2.7 percent to $39.28. The
Dow Jones coal index was 3.6 percent higher.
The complaint is not a fully-fledged dispute, but could
escalate if Brazil does not satisfy the two Asian nations.Last month, Brazil said it would raise IPI tax on industrial
goods by 30 percentage points for carmakers whose vehicles did
not have at least 65 percent locally made parts and which did
not invest in local research and development.Foreign carmakers such as Germany’s Volkswagen AG and U.S.-based General Motors Co were given
60 days to comply with the standards or face the higher tax.South Korea is home to brands such as Hyundai ,
Kia and Daewoo, while Japan boasts Toyota
and Honda .Japan and South Korea allege Brazil’s treatment of foreign
cars contravenes WTO rules on trade-related investment measures
and Article 3 of the GATT agreement, which says WTO members must
treat foreign and domestic producers equally.Brazil’s determination to defend its burgeoning economy has
raised eyebrows among diplomats at the WTO in Geneva, where
free-trade advocates regard any protectionist steps as
short-sighted and ultimately self-defeating.The strength of the economy has pushed up the value of the
currency, causing a problem for manufacturers who compete
against imported goods for a share of Brazil’s market.Brazil suggested WTO ministers could consider the currency
issue at a biennial meeting in December, but one diplomat said
the issue was now off the top table and would instead be dealt
with by the WTO’s working group on trade, debt and finance.Japan and South Korea’s complaint was not debated by the
committee since it only appeared on the meeting’s agenda as
“other business”, a category normally used for items that are
submitted after the agenda has been drawn up.
