Bp considers selling its stake in tnk bp

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MOSCOW – British oil giant BP said Friday it is considering selling its 50 percent stake in its Russian joint venture TNK-BP, in a deal that could fetch at least $15 billion.
TNK-BP, Russia's third-largest oil producer, is a joint venture between BP and AAR, a consortium of Russian billionaire shareholders. The company has been mired in a corporate dispute after AAR blocked BP's deal with another Russian oil company, Rosneft.
BP said in a statement Friday that it has received "unsolicited indications of interest" for its share in TNK-BP and is looking to pursue a potential sale which is "consistent with BP's commitment to maximizing shareholder value."
TNK-BP represents 27 of BP's reserves and 29 percent of its production, according to the British company's latest annual report.
BP's spokesman in Russia, Vladimir Buyanov, told The Associated Press that the information about the potential buyer is confidential. He declined to specify whether the offer might have come from the Russian shareholders. Buyanov said the shareholders' agreement between BP and AAR requires both parties to notify the other of offers to acquire their holdings.
BP's 50 percent stake in the Russian oil producer could fetch more than $15 billion as TNK-BP's market capitalization, based on its share prices at the Russian MICEX stock exchange, hovered around $31.5 billion Friday afternoon. But in Moscow TNK-BP's shares at the MICEX slumped by 6 percent in afternoon trading.
BP, however, stressed that "there can be no guarantee that any transaction will take place."


Read more: http://www.foxnews.com/world/2012/06/01/bp-considers-selling-its-stake-in-tnk-bp/#ixzz2956Qo5uP

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Bp considers selling its stake in tnk bp

  1. 1. MOSCOW – British oil giant BP said Friday it is consideringselling its 50 percent stake in its Russian joint venture TNK-BP, in a deal that could fetch at least $15 billion.TNK-BP, Russias third-largest oil producer, is a joint venturebetween BP and AAR, a consortium of Russian billionaireshareholders. The company has been mired in acorporate dispute after AAR blocked BPs deal withanother Russian oil company, Rosneft.BP said in a statement Friday that it has received"unsolicited indications of interest" for its share in TNK-BPand is looking to pursue a potential sale which is"consistent with BPs commitment to maximizingshareholder value."Read more: http://www.foxnews.com/world/2012/06/01/bp-considers-selling-its-stake-in-tnk-bp/#ixzz28zGj4QAm
  2. 2. TNK-BP represents 27 of BPs reserves and 29percent of its production, according to theBritish companys latest annual report.Readmore: http://www.foxnews.com/world/2012/06/01/bp-considers-selling-its-stake-in-tnk-bp/#ixzz28zH5JjtQ
  3. 3. BP, however, stressed that "there can be no guarantee thatany transaction will take place."BPs announcement was welcomed by investors inLondon, who bid up the shares in the company by 1.57percent to 401.1 pence in morning trading. AAR haspreviously indicated that it could be interested in raising itsstake in TNK-BP. AARs spokesman in Moscow declined tocomment any aspect of BPs announcement.TNK-BPs CEO Mikhail Fridman, one of the members ofAAR, unexpectedly stepped down on Monday.In an interview with the Russian daily Kommersant he citedtensions between the shareholders as a reason for hisdeparture and said the parity ownership of TNK-BP no longerworks.Readmore: http://www.foxnews.com/world/2012/06/01/bp-considers-selling-its-stake-in-tnk-bp/#ixzz28zHa6JbO
  4. 4. Fridman said in the interview that AAR could beinterested in increasing its stake, but it would alsoconsider selling some of its stake in exchange for BPshares.Although one of Russias most lucrative oil assets, TNK-BPhas been mired in boardroom disputes for most of itsnine-year history.. At the height of the previousshareholder conflict in 2008, TNK-BPs CEO RobertDudley left Russia complaining of what he described asa campaign of "harassment." Fridmans appointment asinterim CEO in 2009 and a new shareholder agreementhelped reconcile the two rival groups of shareholders.Readmore: http://www.foxnews.com/world/2012/06/01/bp-considers-selling-its-stake-in-tnk-bp/#ixzz28zHizGNW
  5. 5. But tensions resurfaced last year when AAR blocked apotentially huge agreement between BP and Russian state-owned oil company Rosneft. TNK-BPs Russian shareholdersclaimed that such a deal should be pursued through the jointventure. Jonathan Jackson, head of equities at London-based Killik & Co., said it was difficult to put a price on BPsstake."At the time of the Rosneft/Arctic deal, BP is believed to havemade a cash and joint offer (with Rosneft) of $27 billion for its50 percent stake. However, AAR appears to have demanded$35 billion, and also asked for a 10 percent stake in BP andRosneft, as well as cash," he said. "As for potentialbuyers, clearly Rosneft stands out, although Gazprom, Russiaslargest gas producer, may also have an interest."Rosnefts chairman, and Russias former deputy primeminister, Igor Sechin said on Friday that the state-ownedcompany hasnt considered this investment.Read more: http://www.foxnews.com/world/2012/06/01/bp-considers-selling-its-stake-in-tnk-bp/#ixzz28zHooR9O
  6. 6. "We have never thought about it," he said in commentscarried by Russian news agencies on the sidelines of asummit in Berlin.The venture has provided lofty dividends for both parties.Over the past years, TNK-BPs output has accounted for morethan a quarter of BPs total global production. The British oilcompany drew some $3.7 billion in dividends from theventure last year alone, receiving a total of $19 billion sincethe companys formation in 2003.In the companys annualreport filed in March, BP chairman Carl-Henric Svanberg wasbullish about Russian and the TNK-BP partnership."Russia is particularly important for BP," Svanberg wrote in thereport. "This region still has excellent potential for BP and weremain committed to it."Read more: http://www.foxnews.com/world/2012/06/01/bp-considers-selling-its-stake-in-tnk-bp/#ixzz28zHyJNru
  7. 7. BPs spokesman in Russia, Vladimir Buyanov, told TheAssociated Press that the information about thepotential buyer is confidential. He declined to specifywhether the offer might have come from the Russianshareholders. Buyanov said the shareholdersagreement between BP and AAR requires both partiesto notify the other of offers to acquire their holdings.BPs 50 percent stake in the Russian oil producer couldfetch more than $15 billion as TNK-BPs marketcapitalization, based on its share prices at the RussianMICEX stock exchange, hovered around $31.5 billionFriday afternoon. But in Moscow TNK-BPs shares at theMICEX slumped by 6 percent in afternoon trading.Readmore: http://www.foxnews.com/world/2012/06/01/bp-considers-selling-its-stake-in-tnk-bp/#ixzz28zHQs8nx
  8. 8. When a shareholder questioned the Russian investmentat BPs annual general meeting in April, BP CEO BobDudley said that the thwarted Rosneft deal hadcreated "a lot of noise." But he contended that theRussian links were good business and urgedshareholders to "look through the noise and look at the numbers.Readmore: http://www.foxnews.com/world/2012/06/01/bp-considers-selling-its-stake-in-tnk-bp/#ixzz28zI9kfQL

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