FRIDAY NOVEMBER 21
Finally, Some Decent Action
Criteria Caixacorp confirms it is ``in negotiations'' to sell its Repsol grubstake to OAO Lukoil. Repsol’s stock is suspended, then surges. Spain's Prime Minister Zapatero says he would prefer Repsol remains under a ``Spanish flag.'' Renaissance Capital oil guru says Lukoil will have trouble raising funds for the $12.8 billion deal. And…we’re off to the races.
November 2008
Repsol YPF SA surged in Madrid trading after Criteria Caixacorp. SA said it's ``in negotiations'' over the possible sale of its stake in Spain's biggest oil company to OAO Lukoil.
Repsol rose as much as 8.8 percent after earlier being suspended from trading. Criteria, a Barcelona-based investment company, has held talks with ``various potential investors'' about selling its holding in ``parallel'' with Repsol shareholder Sacyr Vallehermoso SA, according to a regulatory filing today.
El Economista said Lukoil has offered Criteria and other shareholders 28 euros a share for a stake of just under 30 percent in Repsol. An offer at this price would value the combined stake at about 10.2 billion euros ($12.8 billion).
``Lukoil would have trouble financing the deal,'' Evgenia Dyshlyuk, an oil analyst at Renaissance Capital, said. ``They don't have much cash because they need to spend it on capital spending.''
Lukoil, Russia's biggest non-state oil producer, already owns refineries in Bulgaria and Romania and plans to set up an Italian refining venture with ERG SpA next month. Although Spain's Prime Minister Jose Luis Zapatero said yesterday that he would prefer for Repsol to remain under a ``Spanish flag,'' he also said the possible stake sale was a matter for ``private companies.''
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