TNK-BP rules out Yugansk bid

The chairman of TNK-BP, the Anglo-Russian oil group, yesterday became the latest investor to rule out his participation in any auction for the assets of its rival Yukos.
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Mikhail Fridman, the influential businessman who heads the Alfa group, the joint Russian shareholder of TNK-BP, rejected suggestions that his company might bid for Yuganskneftegaz, Yukos's prime production subsidiary.
"We [TNK-BP] are satisfied with the assets we have," he said. In a reference to the legal action brought by the Russian authorities against Yukos, which could lead to the sale of assets, he added: "We don't think it was legally pure and transparent, so it is not in the interests of our shareholders."
His remarks came as Dresdner Kleinwort Wasserstein (DrKW), the investment bank, finalises a valuation of Yugansk ordered by Russia's ministry of justice, which could lead to the sale of the company in order to pay rising tax debts.
Russian agencies yesterday also quoted Surgutneftegaz, another large Russian oil group, as ruling out its participation in any auction for Yugansk. Alexei Miller, head of state-controlled Gazprom, has also said he does not plan to bid.
DrKW is likely by next week to unveil a valuation for Yugansk in the $15bn-$17bn range, which would be too expensive for most of Russia's state-run companies. Companies with foreign links are concerned about the legal implications of bidding.
"The government is in a very uncomfortable position," said Steven Dashevsky, head of research at Aton, a Moscow brokerage. He said the auction was unlikely to happen and the authorities would instead most likely withdraw Yugansk's operating licence.
Sibneft, controlled by the businessman Roman Abramovich, said it would not take part in any Yukos auction.01.10.2004
(From : Financial Times)