Magna, Canada's largest automobile parts manufacturer, warned last week that Oleg Deripaska's $1.5 billion investment in the firm could result in the Russian government becoming a minority shareholder.
In a memorandum filed with the U.S. Securities and Exchange Commission ahead of a shareholder meeting on Aug. 28, Magna outlined the risks involved in the tie-up with Deripaska, including the possibility that Deripaska's Basic Element holding group or its automotive subsidiary, Russian Machines, could be nationalized.
"Certain political forces continue to call for the results of economic reforms, including the privatization of Russian enterprises, such as Basic Element, to be reversed," Magna said in the memorandum.
What was Frank Stronach thinking? Every Russian political pundit and analyst this side of the Urals could have told them that months ago.
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