Shares of BP (NYSE:BP) rose after reports that the company is moving closer to negotiating the sale of its share in its TNK-BP joint venture to Russia’s Rosneft.
Reports say AAR, the group of billionaire investors who hold the other half of the TNK-BP venture, have agreed to sell their stake to Rosneft for $28 billion, potentially paving the way for BP to finally sell its share of the venture, Bloomberg noted.
BP shares rose about 3% in midday trading in New York on Wednesday as investors digested the latest turn of events in Moscow.
BP’s relations with AAR soured after the joint venture was launched. After clashing repeatedly with its partners, BP began soliciting bids for its stake in TNK-BP back in June. Last year, AAR rejected a $32 billion buyout offer from BP and Rosneft. It also blocked a deal between BP and Rosneft to trade drilling projects earlier this year.
However, some analysts suggested that BP might opt to keep its share in a reorganized TNK-BP. With the billionaire group out of the picture, the company would find a better partner in Rosneft, they noted.