Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rosneft Slumps to October Low on 19% Stake Sale: Moscow Mover

April 11 (Bloomberg) -- OAO Rosneft tumbled to the lowest level in five months as Russia weighs the sale this year of 19 percent in the country’s biggest oil producer.

Rosneft fell 1.9 percent to 221.66 rubles by the close in Moscow, the lowest level since Oct. 22. The amount of shares traded was 6.3 million, equivalent to about 1.1 times the three-month average. The stock dropped 1.7 percent to $7.13 in London. The amount of shares traded was 9.2 million.

The Rosneft stake offered would be on top of stock that BP Plc bought last month, Economy Minister Andrei Belousov told reporters today in Moscow. Russia plans to raise 427 billion rubles ($14 billion) this year in asset sales to help balance the budget, Finance Minister Anton Siluanov said in March. A 19 percent stake would equal about $14.4 billion based on today’s market price.

“It wasn’t expected that the government would want to sell such a big stake,” Mikhail Loshinin, an analyst at Rye, Man & Gor Securities, said by phone from Moscow. “Foreigners don’t believe in the Russian market, it’s unclear how they’re going to find demand for such a large amount of shares.”

Prime Minister Dmitry Medvedev’s government is seeking to cut the state’s stake in Rosneft and reduce its weight in the economy. Rosneft Chief Executive Officer Igor Sechin, who oversaw the company’s $55 billion takeover of TNK-BP this year and the acquisition of oil assets from Yukos previously, has opposed a sale for the sake of reducing state ownership and called for a decision to be based on price.

Rosneftegaz, the state holding company where Sechin is chairman, still has the $4.87 billion it received for selling 5.66 percent of Rosneft to BP Plc as part of the TNK-BP deal, Belousov said.

By law, a controlling 50 percent plus one share in Rosneft must remain in state hands, Belousov said.

To contact the reporters on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net; Stepan Kravchenko in Moscow at skravchenko@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.