Yukos-Sibneft merger finalized
By Lisa Sanders, CBS.MarketWatch.com
Last Update: 5:06 PM ET Oct. 3, 2003
DALLAS (CBS.MW) -- Oil companies Yukos and Sibneft merged Friday in a $45 billion deal that will make the combined company the largest in Russia.
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"In the near future we will begin the process of making YukosSibneft a truly major player in the international energy market," said Yukos Chief Executive Mikhail Khodorkovsy, in a statement.
As YukosSibneft executives heralded the merger, Khodorkovsy denied Friday that talks were underway to sell as much as 50 percent of the newly-created company to ExxonMobil (XOM: news, chart, profile), Reuters reported. The appearance in Moscow Friday of ExxonMobil Chairman and Chief Executive Lee Raymond with Khodorkovsy on a panel at a World Economic Forum fanned speculation.
Raymond didn't comment, Reuters said.
Shares of ExxonMobil were up 19 cents to close at $37.75.
On Thursday, the Financial Times reported ExxonMobil was in talks to take a stake in Yukos, citing "people close to the talks".
ChevronTexaco (CVX: news, chart, profile) has also been mentioned as possibly vying with ExxonMobil for a part of Yukos.
"XOM would be more able to afford to 'up the ante' because of their strong balance sheet position," said Banc of America analyst Tyler Dann. "Market reaction would likely take XOM higher, but CVX lower, largely a function of the market's view of XOM management and CVXs lack of financing alternatives for a larger transaction."
Shares of ChevronTexaco (CVX: news, chart, profile) added 28 cents to close at $73.08.
Lisa Sanders is a Dallas-based reporter for CBS.MarketWatch.com. |
