TNK-BP's Russian owners rubbish sale talk

News wires

The Russian shareholders in TNK-BP issued a statement this morning once again denying plans to sell out to a state company - either gas giant Gazprom or oil player Rosneft - as speculation mounted the Kremlin is nearing a deal to take control of TNK-BP.

The statement followed a report in business daily Vedomosti that Russian gas export monopoly Gazprom will buy out the Russian shareholders, or the half of TNK-BP not owned by BP, by the end of the year for up to $20 billion.

"We think it is necessary to again confirm our position which remains unchanged - all speculations and rumours about Alfa-Access-Renova's plans to sell its stake in TNK-BP are wrong and have no basis," the statement said.

Alfa-Access-Renova, the three holding companies representing the interests of the Russian billionaires, including tycoons Viktor Vekselberg, Len Blavatnik and Mikhail Fridman, has 50% in TNK-BP.

The shareholders' denial - the second of such statements issued this year - is the latest in a series of back-and-forth claims in which media say TNK-BP's Russian shareholders will sell out and both Gazprom and TNK-BP come back with denials.

While the Russian billionaires and BP have repeatedly denied any plans to sell, TNK-BP has fallen prey to long-running suspicion the Kremlin wants its Russian shareholders to sell out to a player firm such as Gazprom or Rosneft.

The Vedomosti report cited unidentified sources close to management of both companies.

Sources close to the companies had previously told Reuters Gazprom hoped for a deal to buy 50% of the company this summer.

The report also said Gazprom reached a deal to buy a 1% stake in TNK-BP from BP, giving the gas giant, which supplies a quarter of Europe's gas needs, majority control of the oil player.

Gazprom in Moscow and BP in London declined to comment.

News of a potential takeover was received positively by analysts.

"This is not only because Gazprom could buy into TNK-BP at a hefty premium... but also because the uncertainty surrounding the company and its political problems would disappear," said Troika Dialog brokerage in a note.

Mounting state pressure over recent months on TNK-BP, including the arrest of an employee on an industrial espionage charge and a raid on its Moscow offices, are signs the forced sell-out is approaching, analysts claim.

"It is most likely that (the Kremlin) will make such an offer to Russian oligarchs which they won't be able to turn down. All in all, every Russian oligarch is dreaming of having his assets nationalised on market terms," said Sobinbank.

24 April 2008 09:37 GMT  | last updated: 24 April 2008 11:34 GMT