Report: Investors near compromise at TNK-BP
The Associated PressBP PLC is close to reaching a deal with its billionaire Russian partners in the TNK-BP, signaling an end to a bitter struggle for control at the Russian-British joint venture, a newspaper reported Thursday.
BP chief Tony Hayward is to meet later Thursday with Mikhail Fridman where they will discuss a memorandum of understanding, Vedomosti reported, citing sources close to the shareholders.
Fridman represents the AAR consortium, a group of Russian shareholders who own 50 percent in the joint venture. BP owns the other 50 percent.
Both AAR and BP declined to comment. A spokesman for TNK-BP could not be reached immediately for comment.
According to Vedemosti, under the potential compromise, BP could agree to the removal of Robert Dudley, TNK-BP's current CEO, which has been a key demand from the Russian investors. Shareholders could also agree to include three independent directors, expanding the overall board from 10 to 11.
BP has been mired in a dispute with the Russian shareholders over strategy and management, culminating in Dudley's exit from Russia in July. Dudley, who continues to run the company from abroad, said he and the company had been subjected to sustained harassment.
BP has accused the Russian shareholders of using strong-arm tactics to wrest control of the company.
AAR claimed Dudley ran the venture as a BP subsidiary.