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Glavstroi Denies Sale Report

Oleg Deripaska's holding company Basic Element on Tuesday denied reports that it was seeking a buyer for all or part of its construction arm, Glavstroi, but said it was looking for a strategic partner for some of the company's businesses.

"There has never been any discussion of selling Glavstroi," said Basic Element spokesman Sergei Babichenko. "The construction business remains a priority for our company."

Vedomosti on Tuesday cited unnamed sources as saying the indebted oligarch's holding company had hired Sputnik Group, a consulting company owned by Renaissance Capital founder Boris Jordan, to help it find a buyer for its construction business.

The newspaper also quoted a separate source close to Glavstroi as saying the company was considering the partial sale of its least profitable businesses and the total sale of all construction and development units.

Babichenko said that while the company was not considering the sale of its construction arm, it was nonetheless leaving a variety of options on the table.

"We have long said that we want to attract a partner for some of our businesses, and we might consider the sale of certain specific projects," he said.

Glavstroi's debt, which it owes mainly to domestic banks, totals approximately 47 billion rubles ($1.4 billion), the newspaper said.

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