Repsol-YPF has decised to take legal measures to block the Argentinian government's move to expropriate 51% of its shares in its Argentina unit, YPF. Repsol-YPF has accused the government of Argentinian of pushing share price of YPF down, in order to acquire the unit for less then fair value. US-listed shares of YPF closed yesterday at $21.95/share, down from around $35/share at the beginning of 2012 and above $45/share in July 2011. Shares in the Repsol-YPF group have traded in Madrid below €16/share, down from over €24.07/share at the beginning of 2012.
The move to expropriate 51% of YPF has been building up for sometime. The Argentinian government blames the company for falling oil and natural gas production and rising crude and petroleum product imports. Of the expropriated stake in the company, 51% would be controlled by the government and 49% by the oil-producing provinces. The price that will be paid for the expropriated shares will be determined by the National Appraisal Tribunal, which is controlled by the Planning Ministry.