This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dispute Continues Over BP-Rosneft Deal

By Jane Wardell

LONDON -- BP PLC's (BP) partners in Russian joint venture TNK-BP rejected a proposal by the British oil company on Saturday regarding its disputed tie-up with OAO Rosneft, Russia's top crude producer.

BP said the consortium of Russian billionaire shareholders did not accept an offer to involve them in talks about the Rosneft deal at a TNK-BP board meeting in Paris.

"A proposal by BP's nominated directors, which would have allowed TNK-BP to hold initial discussions with Rosneft about pursuing the Arctic opportunity, was rejected by Alfa, Access and Renova (AAR)," BP said in a statement.

The AAR consortium, which has four representatives on the TNK-BP board -- alongside four BP-nominated directors and three independent directors -- has argued that BP's proposed $8 billion share swap deal with Rosneft violates the TNK-BP shareholders' agreement and would erode the joint venture's competitive advantage.

AAR last month won a High Court injunction in London that has put the deal on ice until the dispute is resolved. The two sides underwent court-ordered arbitration this week and a ruling is expected by the end of the month.

The increasingly acrimonious dispute is giving BP a major headache as it tries to regroup and move on from the disastrous Gulf of Mexico oil spill. The Rosneft deal to explore the Arctic seabed would allow BP to hedge its production options as it faces new restrictions in the United States.

BP said Saturday that it "remains committed to finding a reasonable businesslike resolution to the matters raised by AAR... This will be through arbitration and direct talks with all parties involved."

The London-based company added that it "continues to act constructively and reasonably."

Rosneft was more blunt in a warning statement issued ahead of the board meeting, saying it never considered TNK-BP as a possible participant in its alliance with BP "due to its lack of the relevant competence and TNK-BP never made any proposals to Rosneft expressing its interest in working on the shelf."

"Any activities aimed at disrupting the deal that cause damage to Rosneft will be closely examined," it added. "Based on such examination, Rosneft will undertake all measures to defend the rights of its shareholders, with all the resulting consequences."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $114.60 -3.20%
FB $94.05 -0.10%
GOOG $630.13 -0.17%
TSLA $266.47 2.50%
YHOO $37.12 1.20%

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.40 -4.64 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs