Bloomberg News

TNK-BP Surges on AAR Stake Acquisition Proposal: Moscow Mover

July 06, 2012

TNK-BP jumped for the first time in three days as AAR, a group representing billionaire partners in the Russian oil producer, said it will offer to buy half of BP Plc (BP/)’s 50 percent holding within the next two weeks.

TNK-BP surged as much as 3.3 percent earlier before trading up 0.3 percent at 76.25 rubles by the close in Moscow. BP’s shares lost 1.4 percent to 428.2 pence in London.

AAR will notify the U.K. company of an intention to exercise its right to negotiate for the stake by about July 19, Mikhail Luskutov, a spokesman for the group, said today by e- mail. The proposal would leave AAR holding 75 percent of TNK-BP and BP 25 percent. BP will consider the offer but hasn’t yet received a bid from AAR, David Nicholas, a London-based spokesman for the company said in an e-mail.

“We see the news as positive for TNK-BP,” Daria Kozlova, an analyst at Rye MAN & Gor Securities, said in an e-mailed research note. “Rebalancing of power to AAR should minimize risks of further conflicts with BP, which have negatively affected quotes of the traded subsidiary. It will be also easier to push forward the international projects as BP directors in the board used to vote against such.”

BP announced on June 1 that it would pursue unsolicited approaches from bidders it didn’t identify. AAR said then it had made a preliminary proposal on buying half of BP’s stake about a month earlier. The existing 50-50 partnership no longer serves the shareholders’ interests, billionaire Mikhail Fridman said May 31 after stepping down as TNK-BP chief executive officer earlier that week.

To contact the reporter on this story: Anna Shiryaevskaya in Moscow at ashiryaevska@bloomberg.net; Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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