(Updates with analyst’s comment in fourth paragraph.)
Feb. 24 (Bloomberg) -- OAO Rosneft, Russia’s largest oil producer, will consider the price of a share buyback at a Feb. 28 meeting, it said in a regulatory filing today without providing further information. The shares gained.
Rosneft rose as much as 6.7 percent in London trading, the most since Nov. 28. The shares were up 5 percent at $7.80 at 3:40 p.m. local time.
“I would be making sales in the stock at these elevated levels,” said Julian Rimmer, a trader of Russian shares at CF Global Trading in London. The buyback story is at odds with fundamentals, as the company has large debt, and spending plans are likely to eliminate free cash flow this year, he said.
Rosneft’s press service declined to comment on a possible buyback when phoned by Bloomberg.
Russian news service RIA Novosti, in a report on the board meeting, referred to an earlier offer of 157 rubles a share made to minority shareholders that voted against a 2009 crude-for- loans deal with China that also involved OAO Transneft, Russia’s oil pipeline operator.
The state-run company’s board of directors will also consider deals exceeding $500 million in value, Rosneft said in the document.
--Editors: Alex Devine, Torrey Clark
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