TNK-BP Seeks to Take BP's (BP) Place in £10B Rosneft Deal
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Price: $43.99 +1.08%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 6.8%
Revenue Growth %: +18.5%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 6.8%
Revenue Growth %: +18.5%
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BP plc (NYSE: BP) shares are trading a little lower today, following news that TNK-BP is looking to acquire a 5% stake in the British oil giant for £5 billion (about $8.156 billion).
According to a report in the U.K. Telegraph, TNK-BP would then swap the 5% stake for a 9% stake in Rosneft. BP would end up with half the stake based on its 50% interest in TNK-BP.
It's assumed that when the proposal goes under vote, it will be opposed by BP's Board and vetoed by Rosneft. The move comes as BP may be in a deal that would see TNK-BP taking BP's place in the controversial £10bn Rosneft deal to explore the Arctic.
However, the Telegraph contends that BP would benefit from a £5 billion cash infusion. TNK-BP feels confident that they would be able to raise the money needed to execute the deal.
BP shares are down 0.3% pre-market today.
According to a report in the U.K. Telegraph, TNK-BP would then swap the 5% stake for a 9% stake in Rosneft. BP would end up with half the stake based on its 50% interest in TNK-BP.
It's assumed that when the proposal goes under vote, it will be opposed by BP's Board and vetoed by Rosneft. The move comes as BP may be in a deal that would see TNK-BP taking BP's place in the controversial £10bn Rosneft deal to explore the Arctic.
However, the Telegraph contends that BP would benefit from a £5 billion cash infusion. TNK-BP feels confident that they would be able to raise the money needed to execute the deal.
BP shares are down 0.3% pre-market today.
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