Amtel-Vredestein Won’t Buy Back Shares – Gurin

Amtel-Vredestein has rebuffed reports that suggested it plans to buy back its shares. Responding to the news with an official statement, the Russian/Dutch tyre manufacturer countered what was “erroneously reported and editorialised by Russian Business Consulting’s daily online newspaper RBC Daily.”

“This [RBC report] is a complete fabrication. We have no current plans to purchase our shares and we have never announced any intention to do so,” said Amtel-Vredestein CEO, Alexei Gurin. However, shareholders did vote at the company’s Annual General Meeting (AGM) of Shareholders in June to grant authority to its executive board to purchase up to 10 per cent of its shares.

During the week before Mr Gurin’s statement, Amtel-Vredestein said it will hold an Extraordinary General Meeting (EGM) of Shareholders to vote on the appointment of a fifth member to its executive board. The agenda of the meeting included a proposal to amend the executive board’s authority to purchase shares of the company for a period of fifteen months ending on 5 December 2007 at the stock exchange. The company, together with its affiliate companies, is allowed to hold a maximum of 10 per cent of the issued shares in the company.

The proposed prices for these shares is: “between par value and US$5.70 or between par value and the opening price at the stock exchange on the date of acquisition if the opening price exceeds the amount of US$5.70.”

Appointment

The agenda also included details of the company’s proposed board appointment: Anne van’t Veer is a “highly qualified financial analyst, and has at the same time more than 30 years professional background with different enterprises both in Netherlands and Russia, where the main assets of the company are located,” the agenda read.