Post date: Apr 17, 2012 3:2:55 PM
MADRID, SPAIN (APRIL 17, 2012) (REUTERS) - An incensed Spain threatened swift economic retaliation against Argentina on Tuesday (April 17) after it announced plans to seize YPF, the South American nation's biggest oil company, in a move which pushed down shares in Spanish energy giant Repsol, the controlling shareholder and prompted its CEO to brand Buenos Aires' action "inappropriate of a modern country."
The controlling share-holder of YPF, Repsol, says Argentina's take-over of the energy company is inappropriate and it would seek 18 billion dollars in compensation.
"Kicking our people out and taking control of the company before the president even finished explaining the intervention decree, to me that is inappropriate of a modern country like Argentina, Argentina does not deserve it," Repsol CEO Antonio Brufao said at news conference at his company's headquarters in Madrid.
Madrid called in the Argentine ambassador in a rapidly escalating row over the nationalisation order by Argentina's populist and increasingly assertive president, Cristina Fernandez, a move which delighted many of her compatriots but alarmed some foreign governments and investors.
Spain' industry and foreign ministers have promised action in the next few days against what they have said is hostility from Argentina.
Brufau accused President Fernandez of having no will to enagage in dialogue and negotiations, preferring instead to meet with celebrities rather than CEO of a company with huge investments in Argentina.
"There has been no will for dialogue, I waited at the president's door and Sean Penn went in before me, or any other singer, but it didn't occur to me, the CEO of the first company in the country, to stand behind him," Brufau said ironically.
Although Spain has not made it immediately clear what measures it will take against Argentina, Fernandez has proven impervious to such pressure in the past.
Brufau, nevertheless, was combative on Tuesday saying YPF was worth $18 billion as a whole and it would be seeking compensation on that basis,
"We will ask for 18 billion dollars, 18 billion, and more. And in addition we will start other types of procedures that will make people realize you can't do things wrong, that you can't play with others, we will go for everything," he said.
The Spanish oil major's shares fell by nearly seven percent in Madrid on Tuesday. The company said it could raise money in the bond market and sell some assets to help its cash flow.