AAR to make bid for TNK-BP by October 17th
AAR, which owns half of TNK-BP, a Russian oil company formed from a merger of BP's Russian assets with those of AAR, is planning to make a 'competitive' offer for BP's 50 per cent stake by October 17th, according to group director German Khan, who was quoted in the Kommersant, a Russian national daily newspaper.
AAR, which owns half of TNK-BP, a Russian oil company formed from a merger of BP's Russian assets with those of AAR, is planning to make a 'competitive' offer for BP's 50 per cent stake by October 17th, according to group director German Khan, who was quoted in the Kommersant, a Russian national daily newspaper.
Russian rival Rosneft has also indicated its intention to purchase a stake in the TNK-BP, suggesting that there may follow a bid contest between the two.
The newspaper quotes Khan as saying: "We have to make an offer to BP before October 17th, when a 90-day negotiation term expires. There is no final decision on BP's stake valuation, but in any case it would be competitive.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Having consolidated TNK-BP's shares, AAR over time may consider different options, including an IPO and attracting a new strategic partner."
Interestingly, Khan also said that the firm "doesn't see any problems with a partnership with Rosneft", adding: "On the contrary, we already have successful experience of working with the state company."
According to a shareholder agreement, AAR owns the right to make an offer within the 90 day period since BP put its stake up for sale, after which time other bidders are able to put in an offer.
The stake has been independently valued at $25bn.
BP's share price fell 1.55% to 432.25p by 14:39.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
8 of the best properties for sale with communal gardens
The best properties for sale with access to communal gardens – from an apartment in a listed building opposite London’s Hyde Park, to a wing of a mansion with access to 180 acres of parkland in Henley-upon-Thames
-
The five insurance policies you should have
Some insurance cover will be more important than others. We look at five insurance policies you may need to have to make sure you aren’t caught out in an emergency