Here's the latest twist in the battle for control of TNK-BP, the Russian joint venture from which European oil giant BP plc gets 20% of its output. Partners Len Blavatnik, Mikhail Fridman, German Khan and Victor Vekselberg said Tuesday they would like to
buy out BP's 50% stake.
Why? "The fundamental issue is that BP treats TNK-BP as its subsidiary and not as a joint venture,'' disregarding rights of Russian partners, group CEO Stan Polovets told Bloomberg.com. "This company is so undervalued, we are very frustrated that we haven't made any acquisitions within the last five years." BP says it has no plans to sell. Media speculation points to another option -- the Russian shareholders selling their stake to state-owned OAO Gazprom Neft.
Earlier this year Russian shareholder representatives tried to remove CEO Robert Dudley from the board. They also threatened a lawsuit against BP for employing too many foreigners in Moscow, among other things. On June June 30, local authorities
refused to renew work visas for Dudley and certain other expatriate employees after they expired at the end of the month, The Deal's Renee Cordes reported. The government recently
granted the work permits.
Also in June, sister blog Dealscape reports
BP got a raw deal when TNK-BP agreed to sell its entire 62.9% stake in a Siberian natural gas field and a related project to state-controlled gas monopoly OAO Gazprom for $700 million to $900 million. BP valued that stake at $2.8 billion. -
Baz HiralalRussia's AAR Wants to Buy Out BP to End TNK-BP FightBP sells Russian field at steep discount
Join Corporate Dealmaker's LinkedIn forum
Juergen Lasowski
And the winners are...
