By Carlos Ruano and Andrés González
MADRID Nov 25 Spain's industry minister and
executives and shareholders from Spanish oil major Repsol
are in Argentina to negotiate with the government over
compensation for YPF, three sources told Reuters on
Argentina seized Repsol's majority stake in Buenos
Aires-based energy firm YPF last year, arguing the Spanish
company had not invested enough in the business.
The chairman of La Caixa bank, Isidro Faine, and
the general director of Mexican oil company Pemex have joined
Spanish minister Jose Manuel Soria for the talks with the
Argentine government of Cristina Fernandez and the chairman of
YPF, the sources said.
Repsol and YPF declined to comment.
Spain's government was proposing Repsol receive $5 billion
in compensation and that both Repsol and YPF each name
investment banks to advise on the valuation of the stake seized,
said one source.
La Caixa has a 12 percent stake in Repsol. Pemex, which has
a 9.5 percent stake, has disagreed with Repsol's strategy to
resolve the conflict.