Bloomberg News

Del Rivero Signs Sacyr Investors Pact Strengthening Hand

October 20, 2011

(Updates with stakes of investors in second paragraph.)

Oct. 20 (Bloomberg) -- Sacyr Vallehermoso SA Chairman Luis Del Rivero agreed with two other shareholders to jointly vote their stock in the Spanish construction company, forming a block that controls 26.95 percent of the shares.

Del Rivero, who owns 12.59 percent of Sacyr, Jose Manuel Loureda with 12.65 percent and Francisco Gayo with 1.71 percent also agreed to press for more representation on the company’s board, they said in the text of agreement filed with regulators.

Del Rivero is looking to shore up his position at Sacyr after facing criticism from investors over his clash with Repsol YPF SA Chairman Antonio Brufau. Novacaixagalicia, the Spanish savings bank that owns 8.75 percent of Sacyr, this month urged Del Rivero to resolve the dispute, arguing that it would increase his chances of boosting dividend income.

Sacyr, Repsol’s largest shareholder, is pushing Brufau to boost shareholder payouts as it negotiates the refinancing of a 4.9 billion-euro ($6.7 billion) loan that is due for repayment in December. Del Rivero signed a deal with Petroleos Mexicanos, Repsol’s third-biggest shareholder, in August in which they agreed to press Brufau, who is also CEO, to appoint a separate chief executive.

--Editors: Alex Devine, Baldave Singh

To contact the reporter on this story: Ben Sills in Madrid at bsills@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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