BP up on news of Rosneft talks By Michael Hunter Shares in BP rose in London on Tuesday, outpacing an uncertain FTSE 100, on news of talks to sell its stake in its Russian joint venture, TNK-BP, to Rosneft. The Russian state oil company said it had expressed an interest in buying the UK company’s share of what has become a troubled joint venture there. BP announced the stake was up for sale in June amid strained relations with its partner the AAR consortium, representing Russian billionaire investors. More
ON THIS STORY Gillian Tett We have entered the world of disaster economics Lombard Banks’ mis-selling / Domino’s Pizza / easyJet Trinity Mirror’s Vaghela in running for CEO Aberdeen upbeat despite slower inflows Premium brands boost Imperial Tobacco IN UK EQUITIES FTSE suffers biggest drop in two months Small-cap week Falkland oil explorers suffer Property groups follow FTSE 100 lower BG Group misses out as London shares rally The emergence of Rosneft as a potential bidder is good news as it provides some competitive tension in the sale process that should lead to a stronger price realisation for BP’s stake in TNK-BP,” said Richard Griffith, analyst at Oriel Securities. “In terms of valuation TNK-BP’s market cap is currently around $35bn, implying $17.5bn net to BP. BP’s share of TNK-BP’s net income in 2011 was $4.2bn, which, if trading on the same multiple as BP, would imply a value of $27bn for BP’s stake.” BP’s stock rose 0.7 per cent to 433.6p.