Will India Be Imperial in Russia’s Far North?

Via The Financial Times, an update on India’s bid for Imperial Oil’s Russian assets that we have discussed before.  As the article notes:that

“…only two events could delay the final curtain [to India’s Oil and Natural Gas Corp agreed bid]. One would be a decision by the Russian authorities to block state-controlled ONGC on antitrust or anti-Indian grounds. Another would be the emergence of an even fatter lady in the form of China’s Sinopec, with a higher bid.

The first is the least likely. Assuming a large part of behind-the-scenes manoeuvring towards yesterday’s announcement must have taken place between two nuclear powers, there would be more at stake than Mr Levine’s retirement pot if Moscow imposed a last-minute veto. Still, stranger things have happened.

As for the second, Mr Levine and the Imperial directors have pledged their shares irrevocably to ONGC, as has Baillie Gifford, Imperial’s biggest shareholder. But the latter has reserved the right to switch allegiance if an offer emerges at a 10 per cent premium to ONGC’s, leaving the door ajar for the slim chance of a counter-bid.

Imperial shares stand at a small discount to the offer price. One option for other investors would be to cash in now – if you first invested four years ago when the shares stood at 25p, that would be the safe way out. Others can afford to stay put in the hope of a final positive twist.”

This entry was posted on Friday, August 29th, 2008 at 8:45 am and is filed under India, Oil & Natural Gas Corporation, Russia.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

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Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.