Total increases ownership stake in Cepsa

Total SA raised its direct ownership stake in Spanish integrated Cepsa Group to 44.5% interest upon reaching agreement with Banco Santander Central Hispano (Santander) in a lengthy ownership dispute (OGJ Online, Oct. 14, 2003).

Aug. 17, 2006

By OGJ editors
HOUSTON, Aug. 17 -- Total SA raised its direct ownership stake in Spanish integrated Cepsa Group to 44.5% interest upon reaching agreement with Banco Santander Central Hispano (Santander) in a lengthy ownership dispute (OGJ Online, Oct. 14, 2003).

The Total-Santander agreement stemmed from a partial award made Mar. 24 by the Netherlands Arbitration Institute. The court adjudicated the dispute concerning Cepsa.

Santander agreed to transfer 4.35% of Cepsa to Total for €4.54/share, a fraction of Cepsa's €55.30/share total price. Once the transaction closes, Total and Santander will instruct arbitrators to terminate the arbitration proceedings.

Spanish market regulator Comision Nacional del Mercado de Valores approved the ownership change and confirmed that Total is not required to make a takeover bid for Cepsa. Total had said it did not plan a takeover bid for Cepsa.