Lukoil Rises On Possible Conoco Share Buyback
18.03.10, 15:19 Uhr
Chairman of the board at Lukoil, Valery Grayfer, said the
company would find it necessary to buy back shares held by
ConocoPhillips should the U.S. oil firm put part of its 20% stake in
Lukoil up for sale, the Interfax news agency reported earlier Thursday.
At 1306 GMT, Lukoil's shares were outperforming a 0.6% gain on Moscow's Micex exchange, as it traded up 1.5% at 1716.1 rubles ($58.8) each.
In October, ConocoPhillips said it would sell around $10 billion worth of assets over the next two years as part of a restructuring plan to shore up its finances.
The company said then that it would keep its stake in Lukoil, but news reports this week suggested ConocoPhillips is ready to divest half of its shares within the next three years.
Analysts said ConocoPhillips is unlikely to sell the stocks on the open market--a move that would be seen as a potential negative development for Lukoil's share price.
"As a potentially positive outcome, Lukoil could buy out the 10% stake," said Lev Snykov. However, financing such a deal could be a concern, he added, as Lukoil holds only around $1.5 billion in cash.
Lukoil declined to comment.
At 1306 GMT, Lukoil's shares were outperforming a 0.6% gain on Moscow's Micex exchange, as it traded up 1.5% at 1716.1 rubles ($58.8) each.
In October, ConocoPhillips said it would sell around $10 billion worth of assets over the next two years as part of a restructuring plan to shore up its finances.
The company said then that it would keep its stake in Lukoil, but news reports this week suggested ConocoPhillips is ready to divest half of its shares within the next three years.
Analysts said ConocoPhillips is unlikely to sell the stocks on the open market--a move that would be seen as a potential negative development for Lukoil's share price.
"As a potentially positive outcome, Lukoil could buy out the 10% stake," said Lev Snykov. However, financing such a deal could be a concern, he added, as Lukoil holds only around $1.5 billion in cash.
Lukoil declined to comment.
Company Web site: www.lukoil.com
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