Rumors of YPF Nationalization Spooks Repsol Investors
by Jon Mainwaring
Tuesday, January 31, 2012
Stock in Repsol YPF suffered a hefty fall on the Madrid stock exchange Tuesday after reports emerged that the Argentinian government is considering a nationalization of the firm's 58.2 percent-owned YPF subsidiary.
YPF (Yacimientos Petroliferos Fiscales), the largest oil company in Argentina, has been owned by Repsol since 1999. But after Argentinian newspaper Pagina 12 reported that Argentina's government is currently debating re-nationalizing the company, stock in Repsol lost as much as 3.7 percent during trading in Madrid Tuesday.
YPF's own stock suffered falls in Argentina and on the New York Stock Exchange, where American Depositary Shares in YPF had lost two percent of their value in by 13.14 EST Tuesday.
YPF issued a statement Tuesday to the US Securities and Exchange Commission that said: "While ordinarily it is the company's policy to not comment on unusual market activity, or market rumors, it confirmed to the NYSE that it is not aware of any material corporate developments which could account for the recent unusual trading activity in the company's shares."
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