MADRID, June 24 Spanish oil major Repsol's
board will this week study a non-cash compensation
offer from Argentina over the expropriation of its majority
stake in energy firm YPF, a source with knowledge of
the matter said.
"Argentina has made an offer through (Repsol shareholder
Mexico's) Pemex and the board is expected to study it on
Wednesday," the source said on Monday.
A separate source told Reuters that Pemex, which holds 9.2
percent of Repsol, has been acting as an intermediary in
negotiations with YPF with the hope of getting a stake in
Argentina's valuable Vaca Muerta shale field.
Argentina's government seized YPF in May 2012, claiming
Repsol had underinvested in the company. Repsol has launched
several legal claims against the expropriation.
Bankia Bolsa analysts said Repsol had told them the offer
from YPF was worth $5 billion, including a 47 percent stake in a
joint venture to develop a small part of Vaca Muerta and $1.5
billion in Argentine bonds, well below Repsol's claims.
YPF would hold 51 percent of the joint venture and Pemex 2
percent, Bankia Bolsa said in a note to clients, noting that the
offer is below the 5.5 billion euros book value for the 51
percent stake in YPF that belonged to Repsol and a $9 billion
valuation for the stake according to YPF's by-laws.
Repsol has said it is open to negotiating an out-of-court
settlement over the loss of YPF but wants fair compensation in
the form of cash, bonds or liquid assets for a loss valued at
"Although we welcome the potential intensification of talks
with Argentina, we believe there is a low probability that
Repsol would accept a deal that involves further investments in
Argentina," Espirito Santo Investment Bank said in a note.