Victor, Good to hear from you.
The YPF deal has whipped-up a controversy.
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Argentine Stock Market Opposes YPF Control Bid
BUENOS AIRES, Jan 21 (Reuters) - The Argentine Stock Market Thursday urged the government to drop its backing for a change in oil giant YPF's statutes that would facilitate a takeover bid by Spain's Repsol.
Argentine capital markets would be seriously weakened if YPF shares were delisted following a buyout by Repsol, the Stock Exchange told the government in a letter signed by its head Eugenio de Bary.
The government on Wednesday sold 14.99 percent of YPF to Repsol for $2.0 billion, and the Spanish company said that it would seek a majority stake.
The government promised to back over the next three years a reform of YPF statutes to make it easier to launch a takeover bid.
According to the statutes as they stand, anyone seeking 15 percent or more in YPF is obliged to bid for all remaining shares in the company in cash. A reform would allow payment in shares.
The government sought to reassure the stock market on Thursday, and said that YPF shares would continue to be listed in Buenos Aires unless 90 percent of all traded stocks were bought out.
The Buenos Aires Stock Exchange said that the "eventual delisting of YPF due to a replacement of its shares with those of a foreign company, with the subsequent weakening of the Argentine market, would mean for the state lower tax revenue and higher costs to access foreign markets."
The government now has 5.3 percent of YPF. It also has a veto over decisions affecting the firm.
A change in statutes would require approval by 66 percent of the company's shareholders, who are widely dispersed.
The Argentine government said the state may sell its remaining 5.3 percent sometime this year, adding that interest from Repsol "could be expected immediately."
It said that it would only accept bids from third parties for YPF control if they paid at least 25 percent above the base price of $38 dollars per share paid by Repsol for the 14.99 percent stake.
YPF, Argentina's largest company, accounts for about half of Argentine natural gas and oil output. It also has interests in the United States, Brazil, Indonesia, Bolivia, Venezuela and Ecuador, Canada and Russia. Its total world assets amount to $12 billion.
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