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TNK-BP Climbs for Third Day as Investors Bet Tumble Overdone

OAO TNK-BP Holding (TNBP) advanced for the third day after a selloff sparked by OAO Rosneft’s plans to borrow from its new unit sent the stock to a record low.

TNK-BP gained 2.9 percent to 38.81 rubles by 5:12 p.m. in Moscow, extending the advance for the past three days to 8.9 percent. The 50-stock Micex Index increased 0.1 percent.

Rosneft became the world’s largest publicly traded oil company by output this month when it bought TNK-BP from BP Plc (BP/) and a group of billionaires in a $55 billion deal. Chief Executive Officer Igor Sechin said the company has no plans to buy out minority shareholders in TNK-BP Holding, while the state-run crude producer approved borrowing limits of as much as 114 billion rubles ($3.7 billion) from its units, threatening dividends and sending the shares down 26 percent on March 26.

“Investors misinterpreted the news and overreacted,” Alexander Burgansky, an oil and gas analyst at Otkritie Financial Corp., said by e-mail today. Loans to related parties require a shareholder vote by law, giving minorities a veto, he said.

Prosperity Capital Management’s Mattias Westman, with about $4 billion in Russian assets, said yesterday the fund is planning to team up with investors to oppose the potential borrowing. This may be supporting the bounce back, Alexei Kokin, an oil and gas analyst at UralSib Financial Corp. said by e-mail today.

“There is still hope for a positive outcome for minorities,” Ildar Davletshin, an oil and gas analyst at Renaissance Capital said by e-mail today. “Some investors think would be suicide for the Russian government to treat minorities this way given the need to bring more investors into the country.”

To contact the reporter on this story: Stephen Bierman in Moscow at sbierman1@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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