Russia’s Transaero shares plummet 20% on bankruptcy possibility

MOSCOW, Sep 30 (PRIME) -- Shares of Russian airline Transaero fell 20% to a historical low of 25 rubles on Wednesday after First Deputy Prime Minister Igor Shuvalov said that the company may face bankruptcy, according to data of the Moscow Exchange.

Earlier Wednesday, business daily Vedomosti reported that the key shareholders of the troubled airline, who own 52.7% in the firm, had no time to consolidate a 75% plus one share stake, a condition put forward by national Aeroflot for bailout of the company.

Shuvalov said, “As far as I know, consolidation of the stake has failed and the plan which was approved by the government will be changed .. The main condition which the government needs to embrace is that we are not obliged to save the company but must take care of the people.”

(66.2367 rubles – U.S. $1)

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