BP plc (ADR)(NYSE:BP)’s
Russian Billionaire partners in TNK-BP have discarded the offer for Russian oil
undertaking to contribute $1 billion in short-term dividends for 2012. This has
added to the pressure on the UK oil group to do away with a bitter dispute over
the company.
As mentioned by the
Alfa-Access-Renova syndicate, it was attacking BP’s dividend proposal earlier
this month owing to the instability in international oil markets and edgy
corporate supremacy at the equal joint venture.
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AAR and BP have been
nearing a split ever since the UK based oil company had announced in June that
it wanted to sell its 50 % shares in the company. The two shareholders have
been involved in a legal dispute when BP had put forward the proposal last year
to form a strategic enterprise with the Russian state oil group, Rosneft. AAR
had felt that the tie-up violates its shareholder conditions with BP and had
opposed it.
The legal suit has
forced the respective directors to resign from the board. This has left the
company without sufficient number of members for most of the business dealings.
The leading shareholder in AAR, Mikhail Fridman, had left his post of chief
executive in May.
The company is unable
to generate quarterly dividend payments for the year 2012 as it does not have
sufficient number of members. The provisional dividend would have required only
the common decision taken by the remaining members of the board.
The UK based oil group
has gained from $19 billion in payouts from TNK-BP since its inception in 2003.
AAR has often argued that a record dividend payment by TNK-BP in the previous
year has contributed to 90% of BP’s $4.1 billion. As AAR refuses to hold the
dividend payment, BP may face a new hindrance just when it is preparing itself
for presenting its second-quarter outcomes.
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The UK oil group
company is yet to settle cash for the Gulf of Mexico deal. It is also likely to
face a heavy charge over a minority shareholder claim over the Rosneft
contract.
AAR’s refusal to
support the dividend seems like an attempt to force BP to accept its terms.
Ever since Rosneft has declared its consideration of bidding for BP’s 50%
shares, AAR’s negotiating influence has seen a sharp decline.
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