Sibneft Owners Sue

The former owners of Sibneft have decided not to wait for the outcome of negotiations with YUKOS. In fact, they have decided to regain the company through the courts.

Subsidiaries of Millhouse Capital have filed a suit concerning the invalidation of the additional issue of YUKOS shares. If the court supports the plaintiffs, Millhouse Capital will receive back controlling interest in Sibneft and will not have to pay a single kopeck.

Analyst Kakha Kiknavelidze of Troika Dialog presumes that due to this suit Millhouse Capital will receive at least a tactical advantage in any future negotiations. The court will most likely freeze controlling interest of Sibneft and YUKOS will be unable to conduct a shareholders' meting of Sibneft.

If the court supports the plaintiff in the future, Millhouse Capital will regain 57% of Sibneft shares remaining the owner of more than 10% of YUKOS shares. Expert Timerbulat Karimov of Aton comments, "This is a scenario very beneficial to the former owners of Sibneft. If they return the company in the framework of the reverse deal they would have to pay back $3 billion to YUKOS.' Of course, say experts, YUKOS will retain 35% of Sibneft shares but this stake will hardly let it have serious influence on the company's activities.