YPF (YPF) jumped 8.9% in AH trading yesterday after Carlos Slim disclosed he had bought an 8.4%...

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Uncle Pie Comments (1583)
 
if you read the fine print on the Bloomberg website, Mr. Slim did not actually "buy" a stake in YPF. A bank which he controls received YPF shares when a loan the bank had made defaulted. The loan was collateralized by YPF shares so the bank got the shares. Like when you don't pay your mortgage the bank gets the house. It doesn't mean the bank wanted the house.
15 Jun 2012, 08:42 AM Reply Like

egilkerson Comment (1)
 
Educate me. 'Nationalize', and then have shares available to outsiders?. Who decides who gets the interest ownership? If that is what is happening, 'nationalization' is not the appropriate word... perhaps we should be more 'visible' and 'open' and use more descriptive words.....'confiscation or theft' might work. When governments can't get their economies under control, 'nationalization' of resources is their buzz word and the only available way out.... then what? Governments reduce the private sector by replacing with more government. A very short term solution as governments are notoriously inefficient businessmen...with very little experience in the marketplace. Governments could really mess up the energy business. Is this on the horizon for the EU and the US? Are we getting the wool pulled over our eyes..... again???
15 Jun 2012, 11:48 AM Reply Like

ignoore Comment (1)
 
Uncle Pie is right: Carlos Slim did not buy the shares but received them when the Argentine Ezkenazi family defaulted on a loan securitised by YPF shares. The origins of this loan are fascinating: the Eskenazi's (the CEO of the old YPF) essentially bought 25.6% of YPF on borrowed money to be repaid through future dividends. (Why can't I ever get a deal like that!). The Eskenazi's did not make the late May repayments so some /all (?) of their 25.6% share has been distributed to creditors - including Repsol, and clearly Mr Slim.
15 Jun 2012, 02:16 PM Reply Like