YPF SA (YPFD) fell to a three-year low in Buenos Aires as the bourse lifted a trading halt imposed yesterday after the government announced it would expropriate 51 percent of Argentina’s largest oil company.
YPF plunged 7.3 percent to 107.50 pesos at 12:58 p.m. in Buenos Aires, the lowest since May 2009. YPF has retreated 9.6 percent in the last two days, leading losses among members of the Merval benchmark index in the period, after the government announced the seizure.
Argentina’s government sent a bill to Congress yesterday to seize 51 percent of YPF from Spain’s Repsol YPF SA. (REP) It also took over management of the company, appointing Planning Minister Julio De Vido as chief executive officer, ousting Sebastian Eskenazi.
“The announcement creates uncertainty on the value of the shares even as the government is going after Repsol’s stake, not the free floating shares,” Marcelo Olguin, chief economist at Buenos Aires-based brokerage Grupo SBS, said in a phone interview.
Trading in YPF shares had been suspended since 12:34 p.m. yesterday. The Buenos Aires exchange lifted the suspension today, it said in a statement on its website.
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