Argentine states to buy into Repsol unit - paper

MADRID, Jan 28 (Reuters) - Spanish oil company Repsol YPF (REP.MC) could sell as much as 10 percent of its Argentine YPF unit to Argentine provinces as part of its plan to reduce its exposure to Latin America, newspaper El Mundo said on Monday.

A Repsol spokesman declined to comment on the report.

Repsol has already announced it plans to sell 25 percent of YPF to Argentine investor Enrique Eskenazi in a two-stage deal and planned the flotation of an additional 20 percent on the Buenos Aires stock exchange.

The flotation is expected to be divided into retail and institutional tranches and the current idea, according to El Mundo, is that four Argentine provinces -- Chubut, Santa Cruz, Mendoza and Neuquen -- will buy as much as 10 percent of the shares in the institutional tranche.

The newspaper reported that meetings have taken place between Argentine representatives and Repsol Chairman Antonio Brufau and that it was agreed that the provinces would pay the same price as Eskenazi.

The Eskenazi transaction valued the whole of YPF at $15 billion.

The flotation is expected to take place in June.

Repsol shares were 2.1 percent lower by 1005 GMT at 20.62 euros with the Ibex 35 index .IBEX 2 percent lower. (Reporting by Joe Ortiz; editing by Rory Channing)