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YPF Board OKs Repsol’s $13.44B Offer

May 11, 1999

BUENOS AIRES, Argentina (AP)_ YPF SA’s board has endorsed the $13.44 billion cash acquisition offer proposed by Spanish energy giant Repsol SA.

``The offer in cash by Repsol assures the just and equal treatment for all shareholders,″ YPF chairman Robrto Monti said in a filing to the Buenos Aires stock exchange on Monday.

``We always have maintained a philosophy based on creating value, and it is the board’s opinion, to which I adhere, that the offer by Repsol offers the best alternative of value for our shareholders in the current conditions of the market,″ Monti added.

Repsol has offered to acquire the 85 percent of YPF it doesn’t already own at $44.78 per American depositary share.

In YPF’s filing, the Argentine oil giant said a review of the Repsol offer _ performed by Credit Suisse First Boston Corp. _ called that offer ``reasonable.″

YPF added that Repsol chairman Alfonso Cortina, who was named to YPF’s 12-member board in April, did not participate in the evaluation.

In January, Repsol acquired 14.99 percent of YPF from the Argentine government for $2.01 billion. The Spanish company has strengths in crude oil refining and marketing of final products.

YPF owns and operates three refineries, and owns 2,253 service stations in Argentina. It specializes in oil production and exploration. It earned $1.1 billion on revenue of $5.5 billion in 1998.

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