Spain offers to mediate in Repsol-Sacyr conflict

7:25am EST (www.reuters.com)

* Minister offers to mediate between Sacyr and Repsol board
* Spain worried about damage to Repsol's reputation
* Sacyr was absent for chairman's vote of confidence on Fri

MADRID, Jan 18 (Reuters) - Spain offered to mediate in the conflict over dividend policy between members of oil major Repsol's board and Sacyr, its largest shareholder, which wants a bigger payout.
Sacyr , which holds 20 percent of Repsol, has openly voiced criticism of the oil group's management, particularly its decision to cut the group's 2009 interim dividend by 19 percent instead of further investment cuts or asset sales.

"If they want us to mediate, we are willing to lend a hand," said Industry Minister Miguel Sebastian, who has openly argued that Repsol be managed by Spanish shareholders such as Sacyr.

"Repsol is a strategic company, and if there is any damage to its reputation and image then that is worrying for us," Sebastian said.

After weeks of reports that dividend-hungry Sacyr's chairman Luis del Rivero is seeking to replace Repsol boss Antonio Brufau, Repsol asked its board on Friday to vote on whether Brufau should stay.

Sacyr's three Repsol board members were absent from Friday's meeting, which turned into a unanimous show of support for Brufau. (Reporting by Robert Hetz; Writing by Jonathan Gleave, editing by Will Waterman)