Argentina’s YPF Rises Most in History on Milei Win
Argentina’s state-run oil company YPF SA rose the most in its history after the government won a legal battle with activist investor Miguel Angel Milei.
YPF surged as much as 32% in Buenos Aires trading on Tuesday, the biggest intraday jump since it was privatized in 1993. The stock closed up 25%, the most since the company was listed.
The government of President Alberto Fernandez won a legal battle with Milei, who had sought to block the company’s $2.3 billion share sale. The Supreme Court of Argentina ruled in favor of the government, allowing the sale to go ahead.
Background of the Legal Battle
The legal battle between the government and Milei began in October when the government announced plans to sell a stake in YPF to raise funds for infrastructure projects. Milei, who owns a 5.2% stake in YPF, argued that the sale would dilute his holdings and sought to block it.
The government argued that the sale was necessary to fund infrastructure projects and that it would not dilute Milei’s holdings. The Supreme Court agreed with the government and ruled in its favor.
YPF’s Share Sale
YPF’s share sale was the largest in the company’s history and the largest in Argentina since the country’s debt restructuring in 2005. The sale was oversubscribed, with investors buying more than $3 billion worth of shares.
The sale was seen as a sign of investor confidence in the government’s economic policies. It was also seen as a sign of investor confidence in YPF, which has been struggling in recent years due to low oil prices and a weak economy.
YPF’s Future Outlook
The share sale and the legal victory over Milei have given YPF a much-needed boost. The company is now in a better position to invest in new projects and expand its operations.
YPF is also in a better position to compete with other oil companies in the region. The company has been struggling to compete with larger, more established oil companies in the region, such as Brazil’s Petrobras and Mexico’s Pemex.
YPF’s Impact on Argentina’s Economy
The success of YPF’s share sale and the legal victory over Milei have been seen as a positive sign for Argentina’s economy. The government has been struggling to revive the economy, which has been in recession for several years.
The success of YPF’s share sale and the legal victory over Milei have been seen as a sign that the government’s economic policies are working. It has also been seen as a sign that investors are beginning to have more confidence in Argentina’s economy.
Conclusion
Argentina’s state-run oil company YPF SA rose the most in its history after the government won a legal battle with activist investor Miguel Angel Milei. The success of YPF’s share sale and the legal victory over Milei have been seen as a positive sign for Argentina’s economy. The government has been struggling to revive the economy, which has been in recession for several years. The success of YPF’s share sale and the legal victory over Milei have been seen as a sign that the government’s economic policies are working and that investors are beginning to have more confidence in Argentina’s economy.