La Caixa deal on Repsol in doubt

MADRID, Dec. 30 (UPI) -- Spanish pension bank La Caixa withdrew its interest in selling its 12.5-percent share in Spanish oil group Repsol to Russia's LUKoil, corporate filings show.

La Caixa in November said it had entered into "informal contacts" with buyers for its share in Repsol, with LUKoil later emerging as the potential buyer.

Madrid had expressed concern over the deal, saying it would lead to a foreign takeover of the Spanish Repsol, a privately held integrated oil and gas company. Government officials pledged to do "everything possible" to keep Repsol in Spanish hands.

La Caixa in corporate filings Monday said it was no longer involved in "any negotiations" regarding the sale of Repsol shares.

The Spanish construction group Sacyr Vallehermoso was interested in unloading its 20-percent share in Repsol and faced mounting pressure to do so, but it is unclear what effect the La Caixa move would have, the Financial Times said.

Repsol had looked to LUKoil to enter lucrative fields in Russia, but with Russian energy majors facing dire circumstances amid the global economic decline, analysts question whether any deal would progress.