Yukos, Sibneft expected to undo merger plans, hold press conference

By OGJ editors
HOUSTON, Dec. 16 -- OAO Yukos reported Tuesday it will hold a press conference Wednesday in Moscow during which time the company is expected to verify prevalent speculations that it will unwind a planned friendly takeover of fellow Russian firm OAO Sibneft, according to press reports.

In April, the two firms announced plans to merge into a $35 billion entity, YukosSibneft Oil Co., that would have been Russia's largest oil and gas company and also rank among the world's largest oil producers. Closure of the deal was slated for yearend (OGJ Online, Apr. 22, 2003).

The press reports continued that the two firms were expected to completely reverse their merger proceedings, although no clear indication was given as to whether either company would compensate the other for the deal falling through.

Concerns over possible complications with the merger surfaced following the October arrest of Yukos CEO Mikhail Khodorkovsky by Russian police (OGJ Online, Oct. 28, 2003).