* Minority shareholders say the offer is low
* Rosneft says the offer will last 75 days
* Concerns about the treatment of minorities in Russia
MOSCOW, Nov 6 Russian state oil company Rosneft
said on Wednesday it could delist shares in TNK-BP
Holding, which it acquired last year, if its offer to buy out
minority shareholders falls through.
The ultimatum ups the stakes in a tussle between Rosneft and
the TNK-BP minority investors that followed Rosneft's $55
billion takeover in March of the Anglo-Russian oil venture
TNK-BP. The deal left investors owning 5 percent of TNK-BP's
listed business feeling short-changed.
Rosneft CEO Igor Sechin, an ally of President Vladimir
Putin, originally declined to offer to buy out minority owners
of TNK-BP Holding, later renamed RN-Holding.
In September, Rosneft offered them 67 roubles ($2.06) per
ordinary share and 55 roubles per preferred share.
But the offer disappointed some investors who had hoped to
get closer to the $3.70 a share that a quartet of tycoons led by
Mikhail Fridman were estimated to have received in the TNK-BP
deal, Russia's largest ever takeover.
On Wednesday, Rosneft said it would proceed with its initial
offer, saying it would be effective for the next 75 days, until
"Even if Rosneft is unable to complete, or decides not to
proceed with such a buyout, Rosneft intends to seriously
consider the possibility of delisting RN-Holding," Rosneft said
in a regulatory filing.
This got a chilly response from minority shareholders who
include local and international investment funds focused on
"The threat to delist RN-Holding is new. I still think the
offer is very low," one RN-Holding minority shareholder told
Reuters on condition of anonymity.
Emerging markets fund manager Mark Mobius has appealed for
Rosneft to make a "fair and equitable" offer to buy out minority
shareholders in TNK-BP and has sought a meeting with Sechin.
Rosneft had told Reuters earlier that it was unable to
confirm the reports about a meeting. A Rosneft source has
confirmed that Mobius had written a letter to Sechin.
Russian stocks trade at a near 50-percent valuation discount
to those of other emerging nations, reflecting foreign
investors' worries over a range of issues including corruption,
corporate governance and stalled efforts to modernise the
($1 = 32.5515 Russian roubles)
(Reporting by Vladimir Soldatkin and Katya Golubkova. Editing
by Jane Merriman)