The board of directors of Russia’s metals giant Norilsk Nickel recommended the company’s management to consider buying back up to two percent of the company’s stock from the market, Norilsk Nickel said in a statement on Thursday.
“Considering the positive experience and taking into account financial market volatility, the management has been instructed to study the expediency of acquiring up to two percent of the company’s shares on the open market,” the statement said.
The board of directors also recommended the management to develop and submit proposals for cutting Norilsk Nickel’s investment spending for 2012 and also in the event that market conditions deteriorate substantially.
Norilsk Nickel CEO Vladimir Strzhalkovsky had previously proposed the board of directors should consider cutting investment and operating expenses if the global nickel price falls below $15,000 per ton over two consecutive months.
The board of directors also instructed management to present a plan of action to reduce the company’s authorized capital by redeeming up to 10 percent of its shares by the end of 2012.