STOCKS NEWS EUROPE-Metro shares drop on questions over Russia unit IPO

Shares in Metro (Toronto: MRU.TO - news) fall 5.2 percent, making them the second-biggest decliners on Germany's mid-cap index, as turmoil in Ukraine casts doubt on the German retailer's plans to list a stake in its Russian wholesale business in coming weeks.

"With the current crisis in Ukraine, the market for any Russia-related transaction is shut. Metro would have to leave too much money on the table," a person familiar with the matter said.

A spokesman for Metro said market conditions needed to be favourable for a flotation, adding it was monitoring the situation in Ukraine.

An analyst, who declined to be named, noted that Metro shares, like others with exposure to Russia, were also being hit by the fall in the rouble.

The company was hoping to raise at least 1 billion euros ($1.38 billion) by selling a quarter of its Russia cash-and-carry unit in a London listing, organised by Goldman Sachs (NYSE: GS-PB - news) and Sberbank (MCX: SBER.ME - news) .

Shares in Russian hypermarket chain Lenta, which made its stock market debut on Friday, fell 8.9 percent.

Reuters messaging: emma.thomasson.thomsonreuters.com@reuters.net

matthias.inverardi.thomsonreuters.com@reuters.net

($1 = 0.7240 euros)