MOSCOW (AP) -- Russian state-controlled oil company Rosneft has set a price for buying out minority shareholders in TNK-BP that is far less than the majority shareholders received.
In taking over TNK-BP last year, Rosneft bought out the major shareholders — the British company BP and four Russian billionaires — but left in limbo the minority investors holding the remaining 5 percent.
The value of their shares plummeted and foreign investors cited the case as an example of bad corporate governance in Russia.
Rosneft's chief executive, Igor Sechin, pledged Friday to buy out the minority shareholders and Monday the company announced the price: 67 rubles ($2.07) per ordinary share and 55 rubles ($1.70) per preferred share. This is about half what the Russian billionaires received.
The deal will cost Rosneft about $1.5 billion.
