Rosneft outbids TNK-BP in YUKOS carve-up auction
Published March 27th, 2007
Russian oil firm Rosneft won an auction on Tuesday for a block of its shares held by bankrupt oil firm YUKOS after rival bidder TNK-BP dropped out just a shade above the starting price.
State-controlled Rosneft, which has been widely tipped to take over the bulk of YUKOS’s assets, paid 197.84 billion roubles (3.87 billion pounds) for the first lot, 9.44 percent of its own shares, a 10 percent discount to the market price.
It plans to recycle the shares into the market, gaining new assets and increasing its own free float on the stock market.
“We intend to use the acquired shares in energy asset swaps in Russia and abroad. We will also place the biggest part on the market to expand our shareholder base,” Rosneft spokesman Vladimir Voyevoda told reporters after the auction.
TNK-BP said it was not prepared to pay more.
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