Kety’s CEO Dariusz Manko stated for the daily Rzeczpospolita that he was surprised by the yesterday's article in Parkiet suggesting that Kety might be taken over by RusAl and the company actually negotiates with the Russians. According to the CEO, there was no meeting, talks or any offer from the Russians. Separately, RusAl representatives talked with Interfax saying that RusAl has never expressed interest in Kety.
Our view: We could expect a negative market reaction after yesterday’s Kety price rally. This confirms our view that Parkiet article was pure speculation and Kety’s takeover by Russians is unlikely to materialize, at least any time soon. We also believe that it is unlikely that RusAl would be willing to pay any premium over the current valuation of Kety.