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Gazprom eyeing 20 percent stake in Spain's Repsol: Zhukov

Time is GMT + 8 hours
Posted: 13-Nov-2008 02:11 hrs

Russian energy giant Gazprom is interested in buying the 20 percent of Spanish-Argentine oil group Repsol YPF held by construction firm Sacyr, Russian Deputy Prime Minister Alexander Zhukov, seen here in February 2008, said Wednesday.

"Gazprom is studying right now the possibility of buying the 20 percent of Repsol that has been put up for sale by Sacyr," Zhukov told a joint news conference with Spanish Industry Minister Miguel Sebastian, Spanish media said.

Sacyr Vallehermoso said in September it was considering selling its 20.1 percent stake in Repsol, and Spanish media said France's Total and Royal Dutch Shell were interested.

Following Zhukov's comments, Sacyr shares had gained 6.42 percent to 7.63 euros while Repsol's were down 0.49 percent to 14.15 euros by 1600 GMT on the Madrid stock market.

Sacyr Vallehermoso is burdened by a heavy debt, which stood at 19.2 billion euros (24 billion dollars) in June, after it borrowed heavily in a bid to diversify away from property as the bubble began to burst on Spain's 10-year housing boom.

In September, it announced first-half net profits were down 3.5 percent at 415.5 million euros, a drop it blamed on the rise in eurozone interest rates and the international credit crunch.

Sebastian said "it is the first time" he had heard of Gazprom's interest in Repsol, but added that it concerned a "private company operation on which the government, as always, will not express an opinion."

Zhukov, in Madrid to attend a Russia-Spain inter-government commission, also said Gazprom, Repsol and Spanish electricity generator Iberdrola had held talks on the supply of liquid gas to third countries, but that the discussions "have not progressed because there is no interest" for Gazprom. — AFP