Sacyr Vallehermoso SA, the Spanish builder that owns 10 percent of oil company Repsol YPF SA, fell to the lowest in almost 20 years after an Argentinian newspaper reported the government may not pay for a nationalization move.
Sacyr dropped as much as 11 percent to 1.42 euros, the lowest intraday price since September 1992, and traded down 9.9 percent at 1:57 p.m. in Madrid, valuing the construction company at 608.5 million euros ($800 million). The stock was the worst performer on the benchmark IBEX 35 Index.
Repsol declined as much as 4.5 percent after La Nacion reported today that Argentina’s government aims to pay nothing for the 51 percent of YPF SA that it seized from Madrid-based Repsol, Spain’s biggest oil company. Argentinian President Cristina Fernandez de Kirchner announced the nationalization on April 16, wiping 3.8 billion euros off Repsol’s market value.
“Sacyr moves along with Repsol, as it’s the asset that could make a difference either for good or bad,” Juan Carlos Calvo, a Madrid-based analyst at Banco Espirito Santo, said today by phone. “This is a convulsive time for Repsol, with big uncertainty on how the whole deal over YPF is going to wrap up, whether or not Repsol will cut the dividend or raise capital, or if it’s going to get paid by Argentina.”