End of the line: for Total's plans with Novatek
- Novatek rolls out IPO roadshow
- Novatek rides high
- Total talks tough over Novatek
- Bank snaps up Novatek stake
- Novatek skyrockets
- Total concern over Novatek silence
- Novatek to resume Total sale
- Novatek to accelerate share offer
- Total's Novatek plan takes hit
- Stock funds turn up gas at Novatek
- Total hits hurdle on Russian deal
- Novatek 'planning IPO'
French ditch Novatek deal
French giant Total has scraps its plans to buy a 25% stake in Russian gas producer Novatek.
Total walked away from the deal after Novatek decided to go ahead with a share placement in London.
"Going for an (initial public offering) and doing a deal with Total for a minority stake at the same time is not consistent," Total's chief for exploration and production in Russia, Jean Pierre Dolla, said.
"If the IPO is for 30% and there are not enough shares for Total to buy a 25% stake, then there is no deal," he added.
He said Novatek had recently told Total that it would prefer an IPO since it had failed to obtain a Russian market watchdog permission for a transaction with Total.
Total announced its plan to buy into Novatek in September as part of its drive to catch up with other global players and expand its operations in Russia.
However, the deal has become bogged down in a Russian antitrust investigation and a pricing dispute about the deal, initially estimated at $1 billion.
Novatek is likely to begin a roadshow for its share placement after 6 July and proceed with an offering in London within a week of the roadshow. Russia's market watchdog allowed Novatek to list up to 30% of its shares abroad.
Novatek, which has a small number of its shares listed in Moscow, named international banks Morgan Stanley and UBS Investment Bank co-ordinators for the placement while the same two banks and Credit Suisse First Boston would be book-runners.