Sibneft Loves the Rumors

There have been rumors on the Russian market that Sibneft may be sold to French company Total. Against the background of this information, capitalization of Sibneft grew by $1.5 billion in two days. Analysts say these rumors have real grounds. However, it is also possible that growth in quotations of Sibneft has been caused by the availability of insider information about ambitious production plans of Sibneft for 2004 to some market players.

The rumors that YUKOS, the former owners of Sibneft, were negotiating with a large oil company on the sale of Sibneft appeared on January 22nd. On January 23rd, it was clear that stock market players took these rumors seriously. Prices of Sibneft securities at RTS and MICEX grew by more than 7%. On January 22nd and 23rd, capitalization of the company at RTS grew by $1.5 billion.

A number of analysts say they consider the rumors on the sale of Sibneft founded. They emphasized that versions about the company's sale to a large Western investor appeared right after the announcement of the breakup with YUKOS. Total has always been named the main candidate for Sibneft.

Other analysts are more cautious in their comments. Analyst Dmitry Tsaregorodtsev of the investment company Prospect stated, "I do not understand how it is possible to sell what does not belong to YUKOS yet."