Energy Biz Roundup: Rosneft Becomes Oil Giant of Russia, A123 Shares Rebound
Rosneft Oil Co. (RNFTF.PK) may be purchasing BP’s (NYSE:BP) 50 percent interest in TNK-BP, but it will also buy the 50 percent owned by AAR, which represents four billionaires based in Russia, for $28 billion in cash, which beats the $26.8 billion value of BP’s divestiture. These transactions will boost Rosneft’s control of Russian oil output to about one third.
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Shares of the Israeli Zion Oil & Gas (NASDAQ:ZN) go over the cliff after the firm reduced the exercise price to $1.75 of both series of its outstanding publicly traded warrants. The original exercise price was $7 for one series and $4 for the second.
China’s Wanxiang Group waives any rights to exercise warrants to purchase A123 shares (NASDAQ:AONE), or otherwise go forward with its cancelled financing agreement, and the shares gain more than 50 percent of their value. Just last week, Wanxiang said it still wants to purchase the bankrupt A123, and promised to outbid Johnson Controls for A123’s battery unit.