TNK-BP Investors Putting Stake up for Sale
Oligarch investors in TNK-BP, BP's (NYSE: BP) Russia joint venture, are looking to sell their stake in the company. BP, Europe's second-largest oil company, is also shopping its stake in TNK-BP. Following years of frustrations and botched deals in Russia, the world's largest non-OPEC oil producer, BP is content to part with a significant chunk of its reserves and production in TNK-BP.
Alfa Access Renova (AAR), the group representing the oligarch investors, is now seen as being in a race with BP to dump their respective TNK-BP stakes.
AAR, with which BP has had a long history of disputes over the running of TNK-BP, needs to table a cash offer for BP's stake by October 17 or lose its right to good faith negotiations under the terms of the joint venture, but AAR's move to put its own stake up for sale adds a new dimension to the contest, according to Reuters.
Russia OAO Rosneft, the country's largest oil producer, is seen as the most likely bidder for TNK-BP. TNK-BP is Russia's third-largest oil producer.
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