YPF SA, Argentina’s largest oil company, plunged the most on record in Buenos Aires and New York after the government rejected Repsol YPF SA’s demand for $10.5 billion in compensation for the unit’s nationalization.
Shares fell 20 percent to 86.60 pesos at 1:52 p.m. in Buenos Aires, after earlier dropping 24 percent, the most since 1994 when Bloomberg records begin. The company’s American depositary receipts plunged a record 24 percent to $14.89 as trading resumed today after a halt imposed April 16.
Argentina’s Deputy Economy Minister Axel Kicillof rejected Repsol’s demand for $10.5 billion in compensation for its YPF unit and said the government will rely on “solid data” to value its takeover of 51 percent of its shares.
“Nobody knows how much the government plans to pay for the shares and that’s making people nervous,” Juan Jose Vasquez, an analyst at Bull Market Brokers SA, said by telephone from Buenos Aires. “Also, once the company is controlled by the state, its purpose won’t be maximizing shareholder value anymore.”