MOSCOW, (RIA Novosti commentator Peter Lavelle) - Natural gas giant Gazprom is believed to be in negotiations to raise a major syndicated loan to purchase a controlling share in Russia's fifth largest oil producer, Sibneft.
Sources familiar with the situation have said Gazprom is looking to borrow $12 billion - a record for a Russian company.
For weeks there has been speculation that state-controlled Gazprom and Sibneft have been in negotiations. President Vladimir Putin said at the G8 summit in Scotland that Gazprom was interested in acquiring Sibneft. Market players assumed that Gazprom was merely waiting until the end of the year to receive money for its stock in state-owned Rosneftegaz. Now it appears Gazprom intends to acquire Sibneft through debt.
Deutsche Bank, ABN Amro, BNP Paribas, Caylon, Dresdner Kleinwort Wasserstein and JP Morgan are believed to be part of the loan syndicate negotiating with Gazprom or the same group that was behind Gazprom's abortive attempt to acquire Yuganskneftegaz from tax-laden Yukos through its subsidiary Gazpromneft. State-own Rosneft effectively purchased Yuganskneftegaz for $9.4 billion after securing a $7 billion syndicated loan to acquire the production unit from the mysterious Baikal Finance Group, largely seen as a front.
Millhouse Capital, the major shareholder in Sibneft and controlled by media-shy oligarch Roman Abramovich, recently won a court decision to have 14.5% of Sibneft stock returned after its failed merger with Yukos two years ago. Now Abramovich and other core shareholders control 72% of Sibneft, valued at $11.5 billion.
Abramovich appears keen to deliver Sibneft to Gazprom. With the company proposing a dividend of $2.3 billion, Abramovich has been assured that he will receive a pre-sale cash payout.
Market watchers have speculated that Gazprom has decided to accelerate its timetable to acquire Sibneft to head-off an attempt by Rosneft - already deeply in debt - to bid for the company.
Gazprom's interest in Sibneft is in line with the authorities' goal of creating a national energy champion to compete globally and function as an important Russian foreign policy tool.
There is every reason to believe that Gazprom will acquire a controlling stake in Sibneft in the near future. However, market analysts are concerned that Gazprom's debts, possibly amounting to over $30 billion, could seriously burden the company.
