Russia Norilsk, Metalloinvest suspend merger talks

MOSCOW, May 28 (Reuters) - Russian metals giant Norilsk Nickel (GMKN.MM) and Metalloinvest, the iron ore and steel firm founded by billionaire Alisher Usmanov, have suspended merger talks until further notice, Norilsk said on Wednesday.

"Despite the fact that discussions between Norilsk Nickel and Metalloinvest are at an initial stage Norilsk's management believes that the merger may have strategic and industrial advantages and does not exclude that talks could restart in the future," it said in a statement.

The world's top aluminium producer, unlisted Russian United Company RUSAL, recently bought a 25 percent-plus-two-shares stake in Norilsk Nickel, the world's No. 1 producer of the metal, from Russian tycoon Mikhail Prokhorov.

Norilsk's management was also in talks with Metalloinvest, Russia's largest iron ore miner, about a possible merger, the terms of which were not disclosed.

At the end of April, Metalloinvest issued a statement saying the outcome of the talks would depend on the decision of the majority of shareholders in both companies and on the market estimate of the companies' value.

Last week, Reuters learned from sources close to the deal that Metalloinvest is planning an initial public offering of up to 25 percent of its shares in autumn. Metalloinvest declined to comment on its IPO plans. (Reporting by Aleksandras Budrys)