CONOCOPHILIPPS Company gets Russian foothold

MOSCOW (AP) -- U.S. oil giant ConocoPhilipps paid nearly $2 billion today for a 7.6 percent stake in Russia's Lukoil -- the world's No. 2 oil company by reserves -- in Russia's biggest privatization.
The winning bid of $1.988 billion was only a fraction above the $1.928 billion starting price. ConocoPhilipps made the purchase through Springtime Holdings Ltd. John Lowe and John Carig, ConocoPhilipps' vice presidents, acted as bidders in the auction.
"Of course, we are satisfied with the biggest price in Russia's privatization," said Lukoil Vice President Leonid Fedun. "We are expecting a significant increase in the capitalization of the company."
Rival bidders were reported to be a company controlled by David Guggenheim -- a member of the family behind modern art museums -- and a company controlled by Lukoil management.
ConocoPhilipps' victory appeared predetermined since July, when Russian President Vladimir Putin gave his tacit approval to its bid at a meeting with the heads of both companies.
Putin's blessing to ConocoPhilipps has been widely interpreted as a signal that the Kremlin isn't opposed to foreign investors' tapping into Russia's cheap and plentiful oil and gas reserves.