- Title: RUSSIA: YUKOS AND SIBNEFT SHARES SLUMP AFTER PLANNED MERGER IS SUSPENDED
- Date: 28th November 2003
- Summary: (EU) MOSCOW, RUSSIA (NOVEMBER 28, 2003) (REUTERS - ACCESS ALL) 1. WIDE OF TRADING HALL AT ALFABANK 0.04 2. CLOSE OF TRADERS SPEAKING ON PHONE 0.20 3. WIDE OF TRADINHG HALL 0.15 4. CLOSE-UP OF TRADER LOOKING AT COMPUTER SCREEN 0.20 5. WIDE OF TRADING ROOM 0.24 6. CLOSE OF TRADER LOOKING AT SCREEN 0.30 7. WIDE OF TRADER LOOKING AT COMPUTER 0.35 8. SCU (SOUNDBITE) (English) ALFA-BANK HEAD OF SALES, OLEG MARTYNENKO, SAYING: "The main problem is what is the reason for this decision. It looks like the market is thinking that that they would like to separate problems of those two companies. Yukos might have more problems than Sibneft. And shareholders of Sibneft would like to stay away from that. If that's true then probably this is good news for Sibneft in the future. Obviously they would lose but they might stay away from the problem of Yukos. But for Yukos this could be negative news." 1.12 9. SLV TRADERS WORKING 1.18 10. SCU (SOUNDBITE) (English) ALFA-BANK HEAD OF SALES, OLEG MARTYNENKO, SAYING " "The process was halted not cancelled. So, it might be that it is too early to comment on the eventual result for that but so far uncertainty is there. And a lot of speculations in the market. The market does not know what to do and they are trying to be flat" 1.35 11. WIDE OF EXTERIOR OF YUKOS BUILDING AT NIGHT 1.43 12. PAN FROM ENTRANCE TO BUILDING WITH SIGN SAYING YUKOS 1.54 (W5) MOSCOW, RUSSIA (FILE- APRIL 22, 2003) (REUTERS ACCESS ALL) 13. SLV MIKHAIL KHODORKOVSKY, THEN CHIEF OF YUKOS, AND SIBNEFT CHIEF YEVGENY SHVIDLER SHAKING HANDS TO ANNOUNCE YUKOS-SIBNEFT MERGER 2.02 (W5) NOYABIRSK, RUSSIA (RECENT - NOVEMBER 11, 2003) (REUTERS-ACCESS ALL) 14. WIDE OF SIBNEFT OIL DRILLING FACILITIES/ OIL PUMPING 2.08 15. SLV OIL DRILLING/ NODDING DONKEYS 2.15 16. WIDE OF OIL CONTAINERS WITH GAS FLARE IN THE BACKGROUND 2.18 17. SLV SIBNEFT TRUCK 2.22 18. WIDE OF GAS BURNING OFF IN SIBNEFT OIL FIELD 2.28 19. SLV OIL DRILLING/ NODDING DONKEYS 2.36 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 13th December 2003 12:00
- Location: MOSCOW AND NOYABIRSK, RUSSIA
- Country: Russia
- Reuters ID: LVAYST398ATZ91U9UK9O7TJRNPL
- Story Text: YUKOS and Sibneft shares slump after Sibneft's move
to suspend a planned merger with YUKOS.
YUKOS and Sibneft shares slumped on Friday (November
28) after Sibneft announced the suspension of a planned
merger between the two companies, dragging the rest of the
The two oil companies were due to finalise their merger
by the end of the year with YUKOS already holding 92
percent of Sibneft shares and Sibneft holding 26 percent of
YUKOS shares and $3 billion U.S. Dollars (USD) in cash.
The announcement came shortly after the start of a
joint shareholders met to elect board members to the
"The completion of a merger between YUKOS and Sibneft
is suspended due to a mutual agreement reached between the
core shareholders of both companies," Sibneft said in a
The decision stunned financial markets and sent YUKOS
shares crashing by more than six percent.
"The process was halted not cancelled. So, it might be
that it is too early to comment on the eventual result for
that but so far uncertainty is there. And a lot of
speculations in the market. The market does not know what
to do and they are trying to be flat" says Oleg Martynenko,
head of sales at Moscow's Alfa-Bank.
Many analysts think that Sibneft shareholders decided
to get out because they fear a state takeover of YUKOS.
"Shareholders of Sibneft would like to stay away from
that. If that's true then probably this is good news for
Sibneft in the future. Obviously they would lose but they
might stay away from the problem of Yukos. But for Yukos
this could be negative news," says Oleg Martynenko.
Forty two percent of the oil company is currently
frozen by prosecutors to ensure payment of damages if
former YUKOS chief executive Mikhail Khodorkovsky.
In October Khodotrkovsky, Yukos' main shareholder, was
arrested on charges of tax evasion and fraud. He remains in
jail and has quit his post.
Sibneft and Yukos officially announced their merger in
April, 2003. Some analysts suggested there could be
a Western oil
major waiting in the wings. YUKOS had been a takeover
target for ExxonMobil before Khodorkovsky was arrested and
ChevronTexaco was also rumoured to be interested.
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