Onexim, Morgan Stanley Settle TGK-4 Share Dispute

Onexim Group, Russian billionaire Mikhail Prokhorov's holding company, settled a dispute with Morgan Stanley over a mandatory offer for shares of power generator OAO TGK-4.

Igor Petrov, an Onexim spokesman, said the Moscow-based company was pleased with the agreement and declined further comment. The Moscow arbitration court dismissed the case brought against Morgan Stanley after Onexim dropped the claim, Ria Novosti reported Jan. 23 from the court.

Onexim had sought to invalidate share-sale agreements by TGK-4 minority shareholders, including Morgan Stanley, made with a depositary bank after Prokhorov's group said in October it was no longer able to complete the mandatory offer.

The Moscow court ordered Jan. 22 that the bank guarantee extended to OAO Rosbank as the depositary bank for the mandatory offer be invalidated, according to an e-mailed statement from Prosperity Capital, a TGK-4 shareholder. Rosbank accepted some shares after Onexim said Oct. 13 it couldn't meet the offer.