Like most emerging markets Argentina is unused to hostile takeover bids and certainly not those on the scale of Repsol's bid for YPF. To some analysts the takeover is a case of a company with a poor investment record in Latin America -- Spain's oil company Repsol - gaining control of a well-managed firm - YPF has been remodeled since privatization with a clear strategy and strong balance sheet. They warn of the dangers of leveraged takeovers.
The government needs the money the bid will generate but congress is huffing and puffing about monopoly. This in turn is worrying foreign investors who fear it could affect the bid, an outcome denied by ministers. Together Repsol and YPF would form the world's sixth largest oil company.
But Repsol's $13.4 billion bid for the roughly 85% of YPF that it doesn't already own is providing a bonanza for bankers. The purchase has spawned a series...
