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Russia Evraz shares down 11 pct after trading update

Wed Jul 8, 2009 3:41am EDT

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MOSCOW, July 8 (Reuters) - Shares in Evraz (HK1q.L) dropped 11 percent on Wednesday after the Russian steelmaker said it may breach bond covenants and would rely on main shareholder Lanebrook to buy nearly half of a planned bonds and GDR issue.

By 0734 GMT Evraz global depository receipts (GDR) were off 11 percent in London, while Moscow's Micex metals and mining index .MCXMM was off 1.7 percent. "It would be naive for people to think the company would be in good standing with regard to its creditors, if people had illusions that's one thing, but it shouldn't be news to anyone," Troika Dialog analyst Sergey Donskoy said.

"Really nothing terrible was said, but a share offering always makes some investors want to sell."

-- For more on the Evraz trading update and bond issuance plans see [ID:nL8483891] and [ID:nL8485584]. (Reporting by Alfred Kueppers, Writing by Toni Vorobyova)



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