Lukoil and Latsis expected to tie the knot over petroleum
Russia’s Lukoil and Greece’s Latsis Group are expected to jointly put in today a binding bid for a 23-percent stake in Greece’s largest refiner, Hellenic Petroleum, in what may turn out to be a one-horse race, analysts said. While Austria’s OMV had also expressed an interest in the stake, it was seen as less keen than Lukoil-Latsis. Some Greek newspapers have reported that the government may extend the deadline to allow OMV more time. Speculation that the Latsis-Lukoil joint bid will be the only one for Hellenic Petroleum drove Latsis-owned refiner Petrola Hellas up 4.26 percent on the Athens bourse yesterday. Hellenic Petroleum shares ended with gains of 0.35 percent after climbing more than three percent in mid-session. Both stocks outperformed the Athens benchmark general index, which eased 0.04 percent. «There are growing concerns that OMV will pull out of the race especially after OMV’s CEO failed to spell out the company’s intentions,» said broker Marfin Hellenic Securities. Shifting interests Austrian analysts, which met in early March with OMV management, said that acquiring a stake in Hellenic Petroleum did not seem to be a top priority for the Austrian oil and gas group. In February, Russian oil producer Yukos, which had indicated initial interest, decided it would not bid, shifting its strategic priorities to central Europe. «Generally there is speculation that the sale will be completed very soon, and this is driving the stock higher. The joint venture is the favorite but there has been no mention of what this may cost them,» said an energy analyst. Hellenic Petroleum staff plan a strike to protest the sale. The company, which operates two refineries in Greece and holds a majority stake in neighboring FYROM’s OKTA oil refinery, said that any extension to the tender was a matter to be decided by its main shareholder, Greece. The state directly holds a 49.8 percent stake in the refinery group and controls another 18.9 percent through the state portfolio management agency DEKA. Development Ministry officials were not available for comment.
