Pemex and Sacyr United in Repsol Bid

Despite falling just short of having sufficient shares to take control of Repsol, Pemex and Sacyr-Vallehermoso are keeping their agreement to pool their resources in their bid for the Spanish oil firm. Together both companies now hold 29.5% of Repsol, putting them within spitting distance of the 30% required for a full takeover bid. The Mexican state-owned oil producer and the Spanish construction company agreed in August to pool their voting power to obtain maximum representation on Repsol’s board. Pemex has doubled its position to reach 9.49%, but is still shy of the 9.8% stake it committed to in the agreement. This comes after Pemex retapped its 6.5% 2041s last week for another $1.25bn, pricing it 102.131 to yield 6.339% or 315bp over. The bonds closed at 104.625 mid market Friday after strong day in the credit markets.