A lender to a wholly-owned subsidiary of Magna International shareholder Russian Machines has called in the 20m Magna shares pledged as security for the finance obtained by Russian Machines for its September 2007 investment in Magna International, the global autoparts maker and contract vehicle assembler said in a statement.

Russian Machines' participation in the arrangements entered into with the Stronach Trust in connection with this investment had now terminated, Magna added.

The Canadian Press said this meant that Russian magnate Oleg Deripaska was being forced to cash out his 20m Magna International shares after his OJSC Russian Machines had taken the interest in Magna for US$1.54bn last year when Magna founder Frank Stronach surrendered part of his previously tight control of the 82,000-employee company.

As a result, Magna said, up to 20m of its shares will be disposed of at the direction of the lender; Russian Machines will cease to be an indirect shareholder of M Unicar, the holding company formed to hold the Magna shares of the Stronach Trust, Russian Machines and some members of Magna's management; M Unicar will continue to be indirectly controlled by the Stronach Trust and, following the sale of the 20m shares, will continue to own all of the outstanding shares.

Russian Machines will cease to be an indirect shareholder in the European company through which Magna founder Frank Stronach provides consulting services in relation to Magna's business outside Canada and Austria.

"Our strategic alliance with Russian Machines has assisted us in accelerating our growth in the Russian market," said Magna's co-chief executive officer Siegfried Wolf.

"We have a good working relationship with Oleg Deripaska and the Basic Element group, including Russian Machines and its controlled subsidiary, GAZ Group, Russia's second largest automotive company.

"We believe that the Russian market still holds significant opportunities for us and intend to continue to pursue joint opportunities with Russian Machines and GAZ, as well as other opportunities to advance our position in Russia."

The Canadian press said the 20m shares account for 18% of the total shares outstanding. They were worth C$93.65 each on the Toronto stock exchange as Deripaska's involvement was announced 17 months ago but closed on Thursday at C$49.24 and then fell C$7.24 or 15% to C$42 in early trading on Friday.

The Stronach family trust will continue to have 66% voting control of Magna International, which has 241 factories in 23 countries, the report added.

It noted that Deripaska, said to be the richest man in Russia, had been affected after that country's stock markets suffered their worst turmoil in 10 years, dropping 25% in only three days in mid-September.

That, combined with the global credit crunch, had put severe pressure on heavily indebted companies, some of which put up shares as loan security, the Canadian Press noted.

The news agency said that, though the identity of the Russian Machines creditor that called in the Magna stock was not disclosed, French bank BNP Paribas had provided financing when the deal was finalised in September 2007.

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