Lukoil could become main shareholder in energy major Repsol

MADRID (AFP) - Russian oil group Lukoil could soon become the leading shareholder in Spanish-Argentine energy major Repsol, a possibility that prompted unease in Spain Friday given Repsol's strategic importance.

Leading Spanish savings bank La Caixa said Friday it was in talks with the private Russian oil giant over the sale of part of its 14.2 percent stake in Spain's largest oil firm to the company.

But it said the operation was conditional on the acquisition by Lukoil of the 20 percent stake in Repsol that heavily endebted Spanish construction group Sacyr Vallehermoso is interested in selling.

"If Lukoil comes to an agreement with Sacyr Vallehermoso to buy its stake in Repsol... Lukoil could at the same time buy some of the stake in Repsol held by La Caixa," La Caixa said in a regulatory filing.

Insurer Mutua Madrilena is also willing to sell its two percent stake in Repsol to Lukoil, public radio RNE reported Friday.

Sacyr is currently the main shareholder in Repsol, followed by La Caixa.

Under Spanish takeover law, a shareholder must launch an offer for the whole company once it passes the 30 percent threshold.

The conservative daily newspaper ABC has said that Lukoil is seeking to buy just 29.9 percent of Repsol to avoid launching a takeover bid for the whole firm, which has major operations in Latin America, Libya and Algeria.

Repsol is also the second largest shareholder in another Spain's largest gas company, Gas Natural, which is in the process of acquiring the electricity group Union Fenosa.

Business daily Cinco Dias reported Friday that Repsol was willing to cede its control of Gas Natural if Lukoil were to become one of its shareholders to ensure that the Spanish government would not oppose the entry of the Russian firm into its capital.

Prime Minister Jose Luis Rodriguez Zapatero said Thursday that the government preferred Repsol to remain in Spanish hands, although it would respect the independence and public-listed status of both Lukoil and Repsol.

"We are talking about a private company whose main shareholder is American," he told a news conference, referring to ConocoPhillips.

His comments contrasted with the clear opposition expressed last week by Madrid to the possible acquistion by Russian state-owned gas monopoly Gazprom of Sacyr's 20 percent stake in Repsol.

Russian Deputy Prime Minister Alexander Zhukov was quoted as saying that Gazprom wanted to acquiring the stake in Repsol but the Russian firm later denied the interest.

Spanish newspapers across the political spectrum came out against Lukoil buying a stake in Repsol, which reported a 5.8 percent fall in third-quarter profits to 699 million euros (875 million dollars).

"Are we so stupid to the point that we will give Respol to the Kremlin?," centre-right daily newspaper El Mundo wrote in an editorial on Friday, adding that Lukoil president Vagit Alekperov is friends with Russian Prime Minister Vladimir Putin.

Top-selling daily El Pais, which is close to Spain's socialist government, also opposed the possible deal, saying "it is not the best option for Repsol and the Spanish market."

Repsol is "the nerve centre of the gas and electricity market" because of its links to Gas Natural and Union Fenosa, it added in its editorial.

The issue is especially sensitive in Spain because in recent years various government attemps to create a "national energy champion" have failed.

Trading in shares of Repsol was halted early Friday on the Madrid stock exchange but the suspension was later lifted.

The stock rose 8.58 percent to 14.65 euros in early afternoon trade.