BP AGM Thurs 14 April

BP's AGM tomorrow and if the weekend papers are to be believed the company is desperately trying to come up with a buy-out package (www.express.co.uk: BP LOOKS AT TNK BUYOUT) for its aggrieved TNK-BP partners in order to proceed with its share swap and exploration tie-up with Rosneft.
Difficulties lie in the fact that foreign companies aren't allowed to own more than 50% of a Russian venture leading to speculation that Rosneft may undertake the buy-out but depending which view is being heard the aggrieved partners aren't interested in being bought out. 
In turn, the aggrieved partners appear to be in the process of instigating up to 3 lawsuits (amounting to $10bn) against BP for being blocked out of the Rosneft deal ( www.telegraph.co.uk:BP to fight Russian claim over Rosneft). 
Quite laughably, BP's initial defence appears to be that as the deal has been blocked no slight could have taken place (what would have happened if it had gone ahead?).
Some BP insiders suggest that this is a ploy to engineer a better pay-off?


Whatever the thinking, tomorrow was also the deadline for the Rosneft deal, so it could lapse regardless, although BP could ask for an extension.
Although, BP's key supporter within Rosneft, Chairman and Deputy Prime Minister of Russia, Igor Sechin, has just stepped down from the company (thescotsman.scotsman.com: BP suffers blow to Rosneft hopes as Igor Sechin quits).


Closer to home major shareholder Co-op is also looking to air its grievances at tomorrow's AGM with executive pay awards and the Chairman's performance throughout the last 12 months.
Other shareholders also appear to support this "no confidence".


But, despite the headline of this article: www.citywire.co.uk: Don't buy BP ‘until Rosneft tie-up resolved’, there are fund managers suggesting a good upside to BP's shares once this debacle is resolved - either way.
I for one will be glad if it can be resolved (one way or the other), but suspect that the issues with the tie-up and the board will rumble on for some time. 
Without the finger being pointed at the Chairman, you would not have known there was a Chairman over the last 12 months and as for the latest CEO, he appears to need keeping on a short leash with his ill thought out ambitions, which is an unwanted constraint on the CEO position! 
It all seems to heap unwanted uncertainty onto the company's 2 most senior positions when they should be projecting: confidence; clarity of purpose; and a clear, achievable strategy.


Links to related articles:


- www.citywire.co.uk: Don't buy BP ‘until Rosneft tie-up resolved’
- thescotsman.scotsman.com: BP suffers blow to Rosneft hopes as Igor Sechin quits
- www.express.co.uk: BP LOOKS AT TNK BUYOUT
- www.telegraph.co.uk:BP to fight Russian claim over Rosneft


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