Basic Element, the Russian private investment firm owned by Oleg Deripaska has reportedly pulled out of negotiations to sell its 60% stake in local insurer Ingosstrakh. Russian and international press have been reporting an offer by Italian insurer Generali and Czech private equity fund PPF Investments to purchase Ingosstrakh for some $970 million (CZK 18.2 billion). Basic Element is alleged to have pulled out of the negotiations after voicing its displeasure over the plan to have control over Ingosstrakh vested in both partners rather than just Generali.
Basic Element is said to have been attempting a 50-50% joint venture with Generali, allowing the Italian insurer to then buy out PPFI’s stake in Ingosstrakh. Meanwhile, PPFI has been trying unsuccessfully to insure its representation on the Ingosstrakh board should a sale go through. Basic Element has steadfastly maintained that there was never an offer made, nor do they intend to sell their controlling stake in Ingosstrakh.