PROMSVYAZBANK TO BID ON LUKOIL SHARES

MOSCOW, September 20 (RIA Novosti)-At an extraordinary Promsvyazbank shareholders meeting on Monday, the shareholders will make a decision to approve the purchase of the state's package of the LUKoil shares at an auction to be held by the Russian Federal Property Fund, a press release from the bank said.

On September 27, the property fund stops accepting applications. The starting price of the state's package of LUKoil shares is $1.928 billion.

The package comprises 64,638,729 shares, and the nominal price of each share is 0.025 rubles.

Some experts believe that LUKoil's management attracted the bank to the auction because Promsvyazbank's application would be a type of insurance that the auction is held.

At least two participants are necessary for the auction to be held.

The bank has not commented on the information. "No comments," spokesman for the bank's press service, Igor Pchelok, told RIA Novosti.

LUKoil will not take part in the auction. "Neither LUKoil nor our affiliated structures will participate in the auction of the state package of the company's shares," a spokesman for LUKoil told RIA Novosti.

Last week LUKoil head Vagit Alekperov told reporters that there were three parties interested in the package of shares.

Answering a question about if he knew Promsvyazbank had submitted an application, Mr. Alekperov said: "Anybody can send in an application."

ConocoPhillips was the first party to express interest in the package of LUKoil shares.