OAO TNK-BP Holding surged the most in eight weeks on speculation BP Plc’s billionaire partners plan to sell their stake in the company to OAO Rosneft.
TNK-BP Holding, the traded unit of BP’s Russian venture, jumped as much as 4.5 percent before finishing 3.8 percent higher at 82.96 rubles by the close in Moscow, the biggest gain since Aug. 22.
The billionaires, represented by the AAR group, are looking to sell their 50 percent holding to Rosneft for $28 billion, one person, who declined to be identified before a deal is completed, said. Officials from AAR, Rosneft and BP declined to comment.
“Speculators are buying up the stock hoping for a premium sale payout,” Sergey Vakhrameev, a senior analyst at IFC Metropol in Moscow, said by phone.
President Vladimir Putin has used Rosneft to consolidate the government’s grip on Russia’s energy industry. Headed by Igor Sechin, a Putin associate for more 20 years and former deputy prime minister, the Moscow-based company would produce more than 3.5 million barrels a day of oil and gas should the deal with AAR go ahead.
BP shares surged as much as 4.3 percent in London and closed 3 percent higher at 448.35 pence.