Tug-of-war for Sibir Energy heating up

By IAN LYALL FOR MAILONLINE
Updated: 16:20 EST, 23 April 2009

The battle for control of Sibir Energy has it all - the complex twists and turns of Russian politics, simmering feuds, an alleged fraud and a daring raid on the company's shares.

The tug of war over Sibir between TNKBP and Gazprom represents a huge change in fortunes for the London-listed oil company with some hugely valuable wells and a refinery in the former Soviet Union. 

Sibir saw its shares suspended at 174¾p in February following the revelation it had granted massive loans - $325million in total - to its biggest investor, Shavla Tchigerinsky, a former oligarch fallen on hard times. Auditors are still investigating the arrangement.

Two firms continue to battle for control of beleaguered Sibir Energy

In late trading on Wednesday, however, things changed quickly for the better when TNK-BP, a firm run by the British oil major and a handful of Russia's most influential businessmen, said it was preparing to buy a stake in the company.

TNK-BP said it was willing to pay a generous 430p a share, valuing Sibir at £1.65billion.

But yesterday it was trumped by Gazprom, the Kremlin-controlled natural resources giant which mopped up a 16 per cent stake in Sibir at £5 a share from two big City investors. 

It's not clear whether Gazprom plans to raid the market again.

But if it does, then it has pledged to buy stock from private shareholders who own around 19 per cent of the firm.

All eyes are now on TNK-BP, although an unnamed third party has been sniffing around Sibir.

Tchigerinsky, meanwhile, must be hugely frustrated at the situation.

He has almost 24 per cent of the company, but is unable to sell his shares.

They are in the hands of SBER Bank as collateral against some of the businessman's big property investments, including the giant Moscow Tower, which dominates the skyline of the Russian capital.

'It will be intriguing to see what happens next,' said one source close to Sibir.