PRESS: Consultant opposes Russia’s Rosneft floatation

MOSCOW, Jul 1 (PRIME) -- Italy’s Intesa Sanpaolo, a consultant for privatization of 19.5% of Russian oil major Rosneft, does not recommend a share placement on a stock exchange, business daily Vedomosti reported Friday, citing government officials.

One of the sources said that the market is not ready for a large stake in the company. Another source said that if the government offers a smaller stake, a bad market would mean that the floatation can reduce the price guidance the remaining stake.

Intesa Sanpaolo has not proposed a possible buyer. An official told Vedomosti that Chinese and Indian companies are interested in the stake.

A high-ranking government official confirmed an earlier report by Bloomberg that Russia could sell 19.5% in Rosneft to Chinese and Indian firms for U.S. $11 billion.

Earlier in June, Economic Development Minister Alexei Ulyukayev said that Rosneft will be privatized in 2016 with a more than 50% likelihood.

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