Russian gas monopoly OAO Gazprom won't bid for a 50.9% stake in electricity distributor OAO Mosenergosbyt (MSSB.RS) at the proposed valuation rate for the whole company of $1.3 billion, Gazprom unit Mezhregiongaz told Dow Jones Newswires Wednesday.
"The valuation is four times higher than it should be," a spokesperson for Mezhregiongaz said.
Gazprom already has a 31% stake in Mosenergosbyt. Former electricity monopoly RAO Unified Energy System of Russia (EESR.RS), or UES, is auctioning off 50.9% of the firm in April.
So far, UES hasn't approved the independent valuation of the unit, but plans to do so by mid-March.