MOSCOW, May 23 (Reuters) - Severstal, Russia's largest steelmaker, is in talks to obtain a $5 billion syndicated credit, part of which could be used to acquire domestic coking coal miner Raspadskaya, a source said.
'Indeed, the talks are about a credit for an acquisition, but the banks have yet to receive a formal invitation to participate in the credit,' the source in banking circles said.
He added that some of the funds could also be used to refinance existing debt.
The company, controlled by billionaire Alexei Mordashov, said it had yet to take a decision on the credit.
'Severstal hasn't made any decisions on financing, we do not comment on rumours and speculation,' it said in an emailed statement.
Recent reports in the Russian press have said Raspadskaya's core shareholders, which include steelmaker Evraz, may sell the miner.
Evraz said in April it was reviewing options with respect to its shareholding in the company, which was Russia's largest coking coal miner prior to a deadly accident at its main mine last year.
Analysts at Moscow's Uralsib bank said they did not expect a deal for the 80 percent stake to take place before September.
'The shares could fetch between $4bln and $6bln, according to various reports,' the bank's analysts wrote.
(Reporting by Oksana Kobzeva and Polina Devitt; Writing by Alfred Kueppers; Editing by Jessica Bachman and David Holmes) Keywords: SEVERSTAL/LOAN (alfred.kueppers@thomsonreuters.com; Tel +7 495 775 1242; Reuters Messaging: alfred.kueppers@thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'Indeed, the talks are about a credit for an acquisition, but the banks have yet to receive a formal invitation to participate in the credit,' the source in banking circles said.
He added that some of the funds could also be used to refinance existing debt.
The company, controlled by billionaire Alexei Mordashov, said it had yet to take a decision on the credit.
'Severstal hasn't made any decisions on financing, we do not comment on rumours and speculation,' it said in an emailed statement.
Recent reports in the Russian press have said Raspadskaya's core shareholders, which include steelmaker Evraz, may sell the miner.
Evraz said in April it was reviewing options with respect to its shareholding in the company, which was Russia's largest coking coal miner prior to a deadly accident at its main mine last year.
Analysts at Moscow's Uralsib bank said they did not expect a deal for the 80 percent stake to take place before September.
'The shares could fetch between $4bln and $6bln, according to various reports,' the bank's analysts wrote.
(Reporting by Oksana Kobzeva and Polina Devitt; Writing by Alfred Kueppers; Editing by Jessica Bachman and David Holmes) Keywords: SEVERSTAL/LOAN (alfred.kueppers@thomsonreuters.com; Tel +7 495 775 1242; Reuters Messaging: alfred.kueppers@thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.