Lukoil Considers Share Buyback After Stock Falls 42% From Peak

By Greg Walters

Sept. 12 (Bloomberg) -- OAO Lukoil, Russia's second-biggest oil producer, may initiate a share buyback following a 42 percent decline in its share price from a record.

Deputy Chief Executive Officer Leonid Fedun favors a buyback and will seek approval from the company for the move, Dmitry Dolgov, a Lukoil spokesman, said by phone today from Moscow. Fedun's position was reported yesterday by Reuters at a conference in Moscow organized by the news agency.

Lukoil reached an all-time high on May 16 of 2,682.25 rubles. The stock traded down 0.2 percent at 1,550.50 rubles at 10:52 Moscow time on the Micex stock exchange.

Dolgov said the company couldn't provide any details about the scale of the possible buyback.

Billionaire shareholders Vagit Alekperov and Fedun bought more shares at 1,600 rubles apiece on Sept. 10, the company said yesterday.

Alexperov, Lukoil's chief executive officer, bought 1.2 million shares, raising his holding to 20.54 percent. Fedun bought 800,000 shares, boosting his stake to 9.21 percent.

To contact the reporter on this story: Greg Walters in Moscow gwalters1@bloomberg.net