BUENOS AIRES (Reuters) - Argentina’s state-controlled energy company YPF (YPFD.BA) will sue the head of Repsol (REP.MC) on grounds that he overpaid YPF’s board of directors when the Spanish oil major owned YPF in 2009-2011, a source familiar with the situation told Reuters.
At a shareholders meeting that ended in the early morning hours on Friday, YPF decided to sue Repsol Chairman Antonio Brufau for allegedly overpaying YPF’s board of directors in 2009, 2010 and 2011.
“The suit claims that Brufau is personally liable” for about $38 million in payments to directors that were not authorized by shareholders, said the source, who asked not to be named.
A spokesman for Repsol in Madrid said Brufau had done nothing wrong and that all YPF board compensation was proper during the time that Repsol controlled the company.
Argentina seized 51 percent of YPF from Repsol last year. Repsol has sued Argentina for compensation of about $10 billion, but media reports in recent months say there have been out-of-court negotiations in which YPF offered Repsol a share of Argentina’s giant Vaca Muerta shale project.
Reporting by Karina Grazina, writing by Hugh Bronstein; Editing by Dan Grebler