Yukos Turns Hostile

Yukos has announced a bid to take full control of Sibneft. "Sibneft is our subsidiary. ... This means we are entitled to the company's profits and should have our people on the company's board," Yukos spokesman Alexander Shadrin said in a telephone interview.

Yukos and Sibneft agreed to merge into the world's fourth-largest oil company last year, but the deal fell apart after the arrest of Khodorkovsky on tax and fraud charges. Observers believe the Kremlin was angered by his political and business ambitions and is behind the legal attack.

Legally, Yukos shareholders continue to control 92 percent of Sibneft, while Sibneft's core shareholders have a 26.01 percent stake in Yukos. Yukos also paid them $3 billion in cash.

Sibneft shareholders pulled out of the merger with Yukos as state pressure on Yukos' senior managers and key shareholders increased, but the two companies have yet to work out the terms of their divorce.

A Sibneft board was to be elected Dec. 30, but Yukos boycotted the meeting after it learned that the names of its nominees had been dropped from the ballot. Sibneft officials had indicated that due to pending divorce, Yukos was not expected to put any representatives on Sibneft's board. But Yukos appears to think differently.

"We own 92 percent of Sibneft, so we must be represented on its board," Shadrin said.
In addition, Yukos wants to put Sibneft's financial results as of Oct. 3 on its books, he said.

Shadrin also added, "we are also entitled to its profits. As shareholders, we can demand dividends and make decisions on how the profit should be spent -- be it to shareholders or investments into the business".

Sibneft refused to comment about Yukos' announcement. The company's board has to set a date for the extraordinary shareholders meeting by Monday.