TNK-BP Holding Surges as Shvetsov Slams Rosneft: Moscow Mover
OAO TNK-BP Holding (TNBP) rallied, poised for the biggest gain in more than two months, after a Russian central banker criticized treatment of minority shareholders by its new parent, OAO Rosneft.
“The rules need to be changed and these rules need to protect the minority investor,” Sergey Shvetsov, a deputy central bank chairman, said at a conference organized by the Moscow Exchange today. “The government needs to take the side of the vulnerable.”
TNK-BP Holding, the traded unit of oil company TNK-BP, fell to a record low on March 26 as Rosneft approved a borrowing limit of about $10 billion from TNK-BP’s affiliated businesses. Igor Sechin, Rosneft’s chief executive officer, warned last year that the company may end TNK-BP’s dividend policy and had no plans to buy out small owners.
TNK-BP shares jumped as much as 6.2 percent after Shvetsov’s comments and traded up 6 percent at 43 rubles by 1:43 p.m. in Moscow, the biggest climb since Jan. 15 on a closing basis.
“Did management act rationally? Yes, it did,” Shvetsov said. “Was it legal? It was. Is this kind of thing good for financial markets? No, it isn’t.”
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