UPDATE 1-Mechel to launch roadshow for pref shares-sources

Fri Apr 23, 2010 10:11am EDT

Related Topics

* Listing could take place in early May in New York -sources

* Justice has 83.3 mln preferred shares from Bluestone sale

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MOSCOW, April 23 (Reuters) - Russian coking coal and steel producer Mechel (MTL.N) will on Tuesday launch a roadshow for the sale of preferred shares held by the Justice family as part of the 2009 Bluestone Coal purchase, two banking sources said.

The sources on Friday told Reuters Renaissance Capital and Morgan Stanley will meet with investors from April 27 and that the shares could be listed in New York in early May.

Mechel acquired Bluestone Coal from the Justice family last April for $436 million and 83.3 million preferred shares. [ID:nLM122811]

The Justice family cannot sell the shares until they are listed on a stock exchange.

Mechel also has 55.5 million preferred shares but does not plan to sell them yet, one of the sources told Reuters.

The preferred shares make up about 25 percent of the company's total registered share capital.

Mechel's total market capitalisation exceeds $11 billion. (Reporting by Polina Devitt and Olga Popova; Writing by Alfred Kueppers; Editing by David Holmes)

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