Argentina Takes Step To Take Over Oil Company YPF S.A.
By Tim Plaehn: Two weeks ago, I wrote that the government of Argentina was contemplating a takeover of the former national oil company YPF SA (YPF). Yesterday - April 16 - in the afternoon, the La Nacion reported that President Cristina Kirchner has sent a bill to the legislature authorizing a government takeover of YPF. According to the paper, the Argentine government will own 51% of the oil company and the provinces will own the balance. There is no reason to believe the legislature will not pass the bill. Government leaders from Latin America, including Mexico and Chile, plus the Spanish government have condemned the action. The current administration running Argentina has a record of ignoring the desires of other countries in the region. The underlying reason for the Argentine government actions is a coordinated attempt to keep capital in the country. On the energy front, the country imported about $10 billion worthComplete Story »