Friday, August 13, 2010

Lukoil Receives Financing to Acquire Conoco (NYSE:COP) Shares in Company

The recent announcement that Conoco (NYSE:COP) would be selling 7.6 percent stake in Lukoil back to the company is a step closer to reality, as Lukoil secured $1.5 billion in financing from six banks.

Lukoil agreed with ConocoPhillips to buyback the 7.6 percent stake they held for $3.4 billion, and included in the terms of the deal are a 60-day option to acquire more stock in the company held by Conoco.

Unnamed people close to the deal said the banks involved in the financing are Citigroup Inc. (NYSE:C), Bank of Tokyo-Mitsubishi UFJ Ltd., ING Groep NV, Natixis, Royal Bank of Scotland Group Plc and WestLB AG.

The known terms of the loan are its a one-year deal

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