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Abramovich in Russneft frame



By Upstream staff 

Russia's richest man Roman Abramovich and Indian-born steel billionaire Lakshmi Mittal have been put forward as the likely mystery bidder challenging billionaire Oleg Deripaska for control of oil producer Russneft, according to Russian media reports.

A source at Russia's anti-monopoly agency told Reuters this week the agency had received a second application to compete with Deripaska, whose Basic Element investment vehicle filed for government permission to buy the embattled mid-sized company.

The source did not disclose the name of the second bidder.

Business daily Kommersant quoted an unnamed source as saying Abramovich, owner of London soccer club Chelsea and former owner of Sibneft , was interested in Russneft, which faces over $800 million in back tax claims.

In 2005 Abramovich sold Sibneft to Russian gas monopoly Gazprom, which renamed the company Gazprom Neft.

Kommersant and another Russian newspaper, Vedomosti, named Mittal as another possible bidder for Russneft. The founder and chief executive of ArcelorMittal , the world's largest steel maker, has previously expressed interest in both oil assets and Russian assets.

Russneft declined to comment on the reports.

Former Russneft head Mikhail Gutseriyev, who is accused of tax evasion and illegal business activities, agreed in August to sell Russneft to Basic Element but has since fled the country and is now on Russia's international wanted list.

After Gutseriyev quit, the position of chairman was assumed by Alexander Korsik, who was Sibneft's vice-president under Abramovich.

Sources close to the talks have said Deripaska would pay around $6.5 billion for Russneft, including $3 billion in cash and assumption of the company's substantial debt.

Meanwhile, Swiss-based commodities trader Glencore has filed a request with the Russian anti-monopoly service to buy three Russneft units, a service official told Reuters.

"Glencore has filed a bid for three units of Russneft. We have not started considering the bid as are expecting them (Glencore) to submit the full package of documents," he told the news agency.


Wednesday, 24 October, 2007, 10:13 GMT  | last updated: Wednesday, 24 October, 2007, 11:18 GMT

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