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RUSSIA! Magazine: Historic Moscow Building Targeted in a Hostile Takeover Attempt

MOSCOW, Dec. 5, 2012 /PRNewswire/ -- The Perlov Tea House, a Moscow landmark a mere half-mile away from the Kremlin, has seen a hostile takeover attempt in the most egregious style of the 1990s Russia, reports RUSSIA! Magazine in its new section devoted to doing business in that country.

This blast from the past was directed against the 80 year-old Zhanna Kirtbaya, the Tea House owner and great-granddaughter of the original building manager for Perlov, a prominent Russian tea merchant who built the Tea House in 1890.

Back in 2005, after signing a long-term hire-purchase deal with the Moscow City Hall, Kirtbaya brought in asset management company FINAM to invest US$ 1.2 million in renovation of the Perlov Tea House in exchange for a 25% stake in the Kirtbaya's family business. Kirtbaya alleges FINAM immediately proceeded to break the terms of the agreement, attempting to buy part of the building leased to a retail store instead of investing in actual renovation of the Tea House. FINAM claimed that Ms. Kirtbaya borrowed a significant amount from it in Krasnodar, a southern Russian city some 1,200 miles away from Moscow, replacing the CEO of the building management company and taking de-facto control over it.

Change in management is a frequently used tactic of Russian "raiders," enabling them to strip a company of its most valuable assets while the original owners fight against the management change in Russian courts. In this case, the 80 year-old owner of the Perlov Tea House refused to vacate the building, surviving an unprecedented 75 day-long siege, during which she alleges FINAM armed security personnel blocked deliveries of medications to Kirtbaya and prevented her from talking to the media. Despite these efforts, the media provided extensive coverage of the Perlov House siege, with several pickets posted outside in Kirtbaya's support.

Zhanna Kirtbaya is now suing the raiders, hoping for quick reinstatement of her rights. "I have been threatened for nearly seven years by the people who want to take away the house my great-grandfather built. I, an 80 year-old woman, have to stand up against financial services giant FINAM and its owner Viktor Remsha – a company that manages pension savings of many thousands of Russian citizens as well as works with western funds. What they are doing to the Perlov House demonstrates their attitude towards retirees and the kind of business ethics they espouse."

RUSSIA! is a U.S.-based magazine devoted to Russian culture and business. Coverage of this and other business-related stories is available at www.readrussia.com.

Contact:
Tatyana Foley
t.foley@readrussia.com
+1 917 475 6452

www.readrussia.com

SOURCE RUSSIA! Magazine

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Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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