Russian gas giant OAO Gazprom (GAZP.RS) has halted merger talks with the country's biggest coal producer, Siberian Coal Energy Co., or SUEK, the daily Vedomosti newspaper reported Thursday, citing two unnamed sources in Gazprom.
In February, Gazprom said it would fold part of its electricity assets into SUEK, taking a controlling stake in the company in the process. The plan was to eventually sell the shares in an international initial public offering.
Observers have said the merger - which would create the country's biggest electricity holding - would go against the spirit of ongoing sector liberalization.
Both companies declined to comment, the paper said.