27 September 2003 - 13:18
  • News ID: 5511
Spanish Oil Group Cepsa Surges on SCH Bid

MADRID - Shares in Spain's second largest oil producer Cepsa surged nearly 18 percent on Friday after the leading Spanish bank Banco Santander Central Hispano (SCH) decided to bid for an additional 16-percent stake.

With SCH seemingly poised to take its overall stake to 35.9 percent in a deal worth around 1.2 billion euros (1.4 billion dollars) there was market speculation thE French group Total would make a counter move. Cepsa's share price rose 17.46 percent to end the day at 28.05 euros, with trading in the stock having initially been suspended in the wake of SCH's bid. One investment bank dealer told AFX news, a financial news subsidiary of AFP, that "the general feeling is that SCH's move is purely financial and that it plans to sell its increased stake in Cepsa either to the other core shareholder Total or another interested party." An analyst with one leading European bank meanwhile said Total was likely to have to pay over 30 euros per share to counter SCH's offer successfully. SCH shares ended the day down 1.85 percent at 7.41 euros. The bank said in a statement it was hoping to benefit from Cepsa's magnificent development perspectives. PIN/AFP
News ID 5511

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