Unknown Firm Wins Bid for Russian Oil Giant

[Zhukov]

Unknown Firm Wins Bid for Russian Oil Giant
By ERIN E. ARVEDLUND
and STEVEN LEE MYERS

Published: December 19, 2004

MOSCOW, December 19 - Russia completed the dismantling of Yukos Oil today, selling off the country's largest oil subsidiary to a company that was essentially unheard of until three days ago.

The winner of the Russian oil industry's crown jewel was not just an unknown but also a complete surprise, since Gazprom, the country's natural gas monopoly, had appeared to have positioned itself to take over Yukos, formerly the country's No. 1 private oil producer.

The mystery surrounding the winner - a company called Baikal Finans Group and registered in Tver, a regional town near Moscow - immediately raised suspicions in the minds of industry analysts that the winning bidder was acting on behalf of Gazprom, or even the state itself.

The auction was reminiscent of the controversial, insider-led privatization deals conducted in the early 1990's - with murky financing, questionable bidding and unknown shell companies representing powerful financial groups and emerging as the winner of lucrative assets.

Baikal Finans Group won Yukos's biggest asset with a bid of only $9.35 billion-slightly above the starting price of $8.65 billion, but still far below the market value assessed by independent banks hired separately by both Yukos and the Russian government.

Gazprom did not bid at all.

Rest here.

 

[dilloduck]

Rest here.

Can't say as that i'm surprised---Yuko was neck deep in oil-for-food also. Good time for the former owners to dump and move on. Cover some of their tracks and start all over--probably with the winning bidder!