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    Government makes no decision on price of 10.74% of Gazprom stock yet - Prime Minister Fradkov

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    TBILISI, June 3 (RIA Novosti) - The Russian government has not made a decision on the price of the 10.74% of the Gazprom stock it is going to buy to have a bigger share in the natural gas holding, Russian Prime Minister Mikhail Fradkov said in Tbilisi.

    "The talks are still on and no decision on the price has been made," he said.

    The international bank Dresdner Kleinwort Wasserstein, making estimations by Gazprom's order, cited the market-price range of a Gazprom share as between $3.94-4.52. The whole stock (10.74%) can range from $10.2 to 11.5 billion.

    According to Morgan Stanley, which is the government's appraiser, one Gazprom share costs $3.3-3.9 and, correspondingly, the 10.74% stock costs $8.39-9.92 billion.

    Gazprom sees the Dresdner Kleinwort Wasserstein evaluation as real, Gazprom press secretary Sergei Kupriyanov said earlier.

    "We think that the Dresdner Kleinwort Wasserstein appraisal reflects the real market cost, minding the good perspective of Gazprom's development as a global energy company," Kupriyanov said.

    Gazprom said in a press release that on June 15 the board of directors will consider the coordination of deals between its subsidiaries and Rosneftegaz and fix a price for selling the Gazprom shares owned by subsidiaries to Rosneftegaz.

    Together with the governmental bodies Gazprom is seeking to increase the state's share in the authorized capital to the controlling block by selling on market terms its subsidiaries' shares to Rosneftegaz.

    The deal is to take final shape before the annual meeting of Gazprom shareholders, due on June 24, 2005.

    An increase in the state-owned share in the Gazprom authorized capital is a necessary step towards the liberalization of the share market of the Russian gas giant.

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