Russians may have IPO after TNK-BP bid

Oct. 5, 2012 at 6:18 AM
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MOSCOW, Oct. 5 (UPI) -- The Russian side of TNK-BP, a joint venture with BP, said it may have an initial public offering if it buys the British company's stake in the entity.

Alfa Access-Renova, the entity representing the business interests of four Russian billionaires in the TNK-BP joint venture, announced last week it was planning to make an offer to buy BP's interest in the company.

TNK-BP Executive Director German Khan said an offer to BP is expected by Oct. 17. He said a "competitive" monetary value was under consideration, reports Russia news agency RIA Novosti.

"After consolidating the TNK-BP share package, AAR may with time consider various options, including an IPO or a new strategic partner," he was quoted as saying.

BP officials, including Chief Executive Officer Bob Dudley and board Chairman Carl-Henric Svanberg, met in September with Russian Vladimir Putin to discuss the company's position in Russia. Dudley served as the top official at TNK-BP before moving to the British major.

Both sides of the venture have been at odds over the direction of the company. Dudley in 2008 left his Moscow offices at TNK-BP when the Russian side expressed concern he was favoring British interests.

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