Period of 'good faith negotiations' between BP, AAR on TNK-BP stake to expire
MOSCOW. Oct 17 (Interfax) - The period of "good faith negotiations" into which BP entered with Alfa-Access-Renova (AAR) consortium regarding the sale of its stake in TNK-BP expires on Wednesday.
TNK-BP's shareholder agreement envisages such a procedure. This means that as of Thursday, BP will be entitled to enter into an agreement to sell its stake with any interested party, including AAR.
BP on July 18 informed its partner in TNK-BP, AAR, that it was entering into negotiations to sell its 50% stake in the joint venture. AAR, in turn, informed BP that it wanted to enter into negotiations to buy a 25% stake in TNK-BP from the British company. BP received the offer and from July 19 for a period of 90 days is holding negotiations with both AAR and other suitors for its stake in TNK-BP, but without the possibility of entering into final agreements.
It was later reported that AAR was prepared to buy BP's entire stake in TNK-BP.
On July 24, state oil company Rosneft also said it was interested in holding talks on purchasing BP's stake in the joint venture. The companies agreed to begin negotiations on this issue and signed a confidentiality agreement.
Recently, a source close to AAR told Interfax that the consortium had notified BP that it intended to take TNK-BP to an initial public offering (IPO) or sell all or part of its stake in the oil company.
Under the law governing foreign investment in companies of strategic importance for Russia's defense or security, the purchase of more than 5% of shares in strategic companies is subject to preliminary approval by the authorized government bodies.
So far, no officials have said anything about the government receiving applications for a possible purchase of a stake in TNK-BP.