Contrary to expectations, the placement of global depository receipts (GDRs) of LUKoil, a Russian oil giant, which was planning to list 5.9 percent of its share capital in GDRs on the London Stock Exchange on August 1, 2002, will not take place today. Such was the decision made at a Board of Directors' meeting of Project Privatization Company that was established by the Russian Federal Property Fund to examine the transaction. The Board meeting finished late at night yesterday, according to the statement of Morgan Stanley, which acts as a financial consultant of the Federal Property Fund. The reason for the company's refusal to issue GDRs is allegedly an "unattractive" price of the share package that was proposed by investors to the government.
As it was reported earlier, a source close to the deal said that the representatives of Project Privatization Company were likely to make a positive decision regarding the issuing of LUKoil's GDRs, but the question of the listing price proved to be crucial in terms of the real value of the company's stocks. As it was also reported earlier, the roadshow of LUKoil's GDRs was held in New York, London and Boston on July 24-29, 2002.