The FINANCIAL — Russia's second largest oil producer LUKoil may not use an option to buy its 11.6 percent stake back from U.S. oil major ConocoPhillips, LUKoil quoted President Vagit Alekperov as saying on August 30, Ria Novosti informs.
"Vagit Alekperov told reporters that a decision on ConocoPhillips' remaining 11.6 percent in LUKoil has not been made yet, but in his opinion the Russian company should not acquire it," LUKoil said, adding that Alekperov was against the company becoming totally private.
Conoco said last month that it would sell its entire 20 percent stake in LUKoil.
LUKoil has bought 7.6 percent of the stake for $3.442 billion and has an option to buy another 11.6 percent represented by American Depositary Receipts worth $5.529 billion by September 26.
Russia's top lender, state-run Sberbank, said earlier it was considering lending LUKoil cash to help it buy the stake back.
If LUKoil does not acquire the shares through the option, ConocoPhillips would sell the stake on the market for no less than $55 per share by September 27, 2010, and no less than $53.25 after this period and before January 1, 2011. LUKoil would have a preferential right to buy the shares.