Argentina dismisses oil giant’s claim for £6.6bn

 
18 April 2012

Argentina has rejected a claim for $10.5 billion (£6.6 billion) compensation from Spanish oil giant Repsol following the South American country’s seizure of control of its YPF subsidiary.

Repsol’s chairman had said the Spanish company would seek compensation based on Argentina’s seizure of 51% of the equity and YPF’s net asset value of $18 billion.

But this claim was rejected by Argentina’s Axel Kicillof, deputy economic minister.

He said: “The numbers some executives talked recklessly about in valuing the company will be revised as we review the fine print and the secret information managed by the company.” Kicillof added that the Argentinian government intended to manage YPF to ensure profitability “beyond Repsol’s expectations”.YPF’s market value on the Buenos Ares stock market has fallen more than 9% this week, valuing it at 42.5 billion pesos ($9.7 billion). That is barely half the value Repsol, which will see its stake cut from 57% to just 6%, claims the company is worth. Trading in YPF shares on the New York Stock Exchnage was suspended for the third day running.

Spain’s Industry Minister José Manuel Soria said it was considering unspecified action on diplomacy, trade, industry and energy.

Reports today said the nationalisation has scuppered plans for China’s national oil company Sinopec to buy YPF. Bankers were reported as saying that Sinopec had almost struck a deal to buy Repsol’s stake in YPF in a move that would have valued the Argentinian company at $15 billion.

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