Sacyr ignores the council convened in support of Repsol Brufau

SANTIAGO CARCER - Madrid -- 16/01/2010 (http://www.elpais.com)

The three directors of Sacyr Vallehermoso group Repsol YPF, Luis del Rivero, Juan Abello and Jose Manuel Loureda, yesterday ignored the extraordinary meeting of council convened on Wednesday by the president of the oil, Antonio Brufau, to seek the explicit support of management and their dependents. It was the great absence of a call in which Brufau got what he wanted in the short term: the unanimous backing of the rest of the council for its management and ratification in office.

In Rome, the priests threw a javelin into enemy territory in red. In Madrid, a letter from Sacyr minutes before 12.30 to Repsol, communicating the absence of representatives of the largest shareholder of the company (20.01% stake), made the function. The letter was signed by the three directors and reflected a unanimous decision by the board of Sacyr. The result: a declaration of war, but more formal than anything else.

Because in reality, the confrontation and was held for months. Del Rivero, who has invested over 6,500 million in Repsol YPF with credits exceeding 5,000 million, question the management of Antonio Brufau. Dislikes investment policy (32,000 million between 2008 and 2012 under the Strategic Plan adopted); do not like dividend policy, with a 19% reduction in the account referred to 2009 and does not like the company does not adapt to the times of crisis, ignoring the possibility of selling some assets to cash.

The confrontation between Brufau and Del Rivero, with the second largest shareholder in the oil-Criteria-La Caixa (14%) - the expectation was on tables in the month of December. Reluctantly, Sacyr accepted the dividend cut of 19% proposed by Brufau, to 0.425 euros gross per share. But the discrepancies did not vanish. Simply believe that Brufau Del Rivero, appointed at the request of La Caixa five years ago, when the balance of forces in the oil was another, he has already served his time. But Brufau is a tough nut to crack. With the drums marking the pas de chargeThe president of Repsol YPF has received all possible support: first, the main shareholders, La Caixa (14% of capital) and Pemex (4.81%), and then, from unions to shareholders associations, through independent directors.

Who has declared war on whom, they wonder at the front of Sacyr Vallehermoso. Because when it lobbied, argued in the group, it is clear to be confrontational. By Repsol YPF, the absence of directors of Sacyr has multiple readings. The first, which is a disrespect to the governing body of the company. Because yesterday there was another absence from the meeting, the independent advisor Henri Philippe Reichstul. But this delegated voting and his observations for incorporation into the minutes.

Legally, the absence of representatives of Sacyr, say sources in the oil, may be a breach of the regulations of the board. In this reading, as opposed Sacyr and time-hours, which convened the special meeting to justify his decision. In any case, the judicial-legal front is not covered by any party. At least for now.

But the horror Sacyr advisers to give more. For example, to the halls of the direction of Repsol YPF run the idea that Del Rivero does not have the wholehearted support of his partners and colleagues in Repsol, Abello and Loureda.

In this version, sources categorically denied the construction group, Del Rivero have only managed to start up their fellow Sacyr, after two tense meetings, a minimum commitment: not to attend the council convened in Repsol not to show their differences when Brufau rate management.

With Sacyr advisers voluntarily placed out of focus, there remains the question of how this fact can affect the relationship with the group's other major shareholder, La Caixa, and the possibility of an over-ordered and agreed-on dome oil.

Repsol has achieved important both in the party that has been playing for months. But the party is not over. It is clear that the council did not close the crisis yesterday and it is clear that the positions of Brufau and Del Rivero are irreconcilable. In this context and at this moment, peace in Repsol bypasses the long tenure or promotion of both. Financial sources think so aware of the war in the oil.

For Del Rivero, who has denied ever seeking political support in its battle in Repsol, the timing is delicate. At the height of the Spanish EU presidency, the last thing the Government wants is a war in one of the largest companies in the country.

According to sources familiar with the situation, Del Rivero have maintained contact with the Industry Minister Miguel Sebastian, to explain their plans. The information would have reached high level in the Executive. And they have shown their concern about tensions in the oil. Sacyr not confirmed the contacts. At the Exchange, yesterday gave Repsol 1.71%, slightly above the loss of the FTSE.