 The deal would have created one of the world's top oil firms |
Yukos and Sibneft, the two Russian oil firms whose on-off merger has been the focus of speculation, have finally agreed to call off their alliance. Yukos, whose main shareholder, Mikhail Khodorkovsky, is currently in prison, had hoped to revive the merger.
But some Sibneft shareholders have long been opposed to the deal, despite Yukos owning almost all the firm's shares.
The issue has become highly political since Sibneft first called off the merger last November.
Breaking up is hard
The two firms promised they would reach an agreement on unravelling their entanglement as soon as possible.
But given the size of Yukos's shareholding in Sibneft, this could prove problematic.
In particular, there is the issue of paying compensation to Yukos shareholders, something Sibneft is certain to resist.
Mr Khodorkovsky's arrest, on charges of fraud and tax evasion, is seen as the main cause of the failure of the deal.
Without Mr Khodorkovsky, who ran Yukos until he fell out with the Kremlin last year, the impetus for a merger was lost.
And Sibneft shareholders were nervous of committing to an alliance with a firm whose future was under political threat, including the possible loss of its oil licences.
One-Minute World News 
News services
E-mail this to a friend 
Printable version 
Russia's oligarchs
