17 April 2012 12:12 [Source: ICIS news]
By Franco Capaldo
LONDON (ICIS)--Repsol YPF’s shares plummeted on Tuesday after ?xml:namespace>
A decree has been approved which has immediately placed two government ministers in control of YPF, giving them all the powers of the Board of Directors.
The president added that a bill would be presented to the country’s senate to allow the government to take over 51% of YPF shares, owned by Repsol.
At 10:30 GMT, Repsol YPF’s shares in
Repsol owns a 57.43% stake in YPF, with a book value as of the close of 2011 of €4.122bn ($5.424bn), however, the measures taken by
Repsol YPF added that it will carry out all pertinent legal actions to preserve the value of all its assets and the interests of all of its shareholders. It also said that "the unlawful expropriation of YPF does not affect the growth capacity of any of Repsol’s businesses outside
The amount of compensation Repsol will receive following the government's move to nationalise the YPF unit is expected to be determined by an Argentine tribunal. It is likely to be far less than Repsol's preferred value.
The takeover follows more than two months of government pressure on YPF to boost investment and output. The stake in YPF would give the Argentine government access to its shale oil reserves and natural gas production.
Analysts at investment bank RBC Capital Markets have reduced its price target for Repsol YPF to €17 from €20 on the back of the news.
“Our price target reflects the fact while the re-nationalisation is not a done deal, we believe the requirement of a two-thirds majority is unlikely to be an obstacle and taking immediate administrative control is an aggressive move,” it said.
The analysts added that although Repsol has told shareholders it intends to carry out all pertinent legal actions to preserve the value of all its assets,
Additional reporting by Al Greenwood and Leela Landress
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