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Petrobras reportedly breaks off talks on Eni´s Galp stake
Wednesday 02 February 2011

Brazil´s oil and gas group Petrobras (SAO:PETR3) has abandoned negotiations to buy Italian Eni´s (BIT:ENI) 33.34% in Portuguese energy group Galp (ELI:GALP), valued at EUR3.8bn (USD5.24bn), Reuters cited on Wednesday an insider as saying.

According to a source cited by Reuters earlier today, Petrobas offered less for the stake than Eni had asked.

Business daily Diario Economico reported in January that Petrobras offered EUR3.5bn for the stake.

Eni refused to comment on the talks with Petrobras but said that the Brazilian company was just one of the several parties which expressed interest in its Galp stake, Reuters reported.

A deal would help Eni pay down debt and ensure dividends. Its chief executive, Paolo Scaroni, however, told reporters last month that the company will take its time with the sale, as the Galp shares continue to gain value.
Date Published: 02/02/2011
Target: Galp Energia SGPS SA
Country: Portugal
Deal Size: 5.24bn (USD)
Sector: Petroleum/Natural Gas/Coal, Utilities
Type: Divestment
Status: Talks
Buyer: Petroleo Brasileirob SA (Petrobras)
Petrobras abandons talks.