AAR CEO Says TNK-BP Long-Term Investment, No Exit Plans, FT Says

Alfa-Access-Renova, the group of Russian billionaires that owns 50 percent of TNK-BP, rejected BP Plc’s offer of $27 billion for its stake in TNK-BP because it retains a long-term commitment to TNK-BP, the Financial Times said, citing AAR Chief Executive Officer Stan Polovets.

“AAR wanted the Rosneft deal turned over to TNK-BP, not some selected parts,” Polovets said, according to the FT. “AAR is a long-term strategic investor in TNK-BP and has no plans to exit,” he said, the newspaper reported.

BP and OAO Rosneft decided to end the discussions with AAR because the group made “unrealistic” demands and placed a valuation of more than $70 billion on TNK-BP, the FT said, citing people close to the discussions.

A person close to AAR rebutted that view, the FT said. “It is up to BP to make a sensible proposal to get out of the mess it has created,” the person said, according to the FT.

To contact the reporter on this story: Blanche Gatt in London at bgatt@bloomberg.net

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net.

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