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.

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.

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"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.