Tuesday 31 March 2009

Abu Dhabi’s IPIC Pays $4.4 Billion for No. 2 Stake in Cepsa

International Petroleum Investment Co., the state-owned company in Abu Dhabi seeking to capitalize on falling asset prices, agreed to pay 3.3 billion euros ($4.4 billion) to raise its stake in Cia Espanola de Petroleos SA.

IPIC will own about 47 percent of Cepsa, Spain’s second- largest oil producer, up from 9.5 percent before, the Abu Dhabi- based company said today in a statement. Cepsa, which closed at the end of last year at 67.60 euros a share, rose as much as 2.1 percent in Madrid trading after Banco Santander SA and Union Fenosa SA agreed to sell their stakes for 33 euros a share.

“The price looks reasonable for both sides,” said Francisco Salvador, a director at broker Venture Finanzas.

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