--Chilean companies' assets in neighbor country Argentina won't
be damaged with oil and gas producer YPF's expropriation, said
Chile's foreign minister
--Chile's finance minister ruled out the possibility that
investors' confidence in Chile will be hurt by Argentina's move
--Chilean government is in talks with Argentine authorities over
Enap's revoked oil concession
(Adds details and comments from Foreign Minister Alfredo Moreno
starting in the first paragraph.)
SANTIAGO (Dow Jones)--Chile's foreign and finance ministers said
Tuesday they don't expect any fallout for the country's companies
or investor confidence in Chile from neighboring Argentina's plan
to nationalize YPF SA (YPF, YPBD.BA), its largest oil and gas
company.
After a months-long battle, President Cristina Kirchner said
Argentina will expropriate YPF, raising concerns among companies
with operations in the country and worries over investor sentiment
in the region. Spain's Repsol YPF SA (REPYY, REP.MC) is YPF's
controlling shareholder.
Some market participants believe Argentina may extend its
expropriation policy to other companies operating in the
country.
Chilean Foreign Minister Alfredo Moreno, however, said he
believes Chilean companies' assets in Argentina won't be negatively
affected by Kirchner's move, Valor Futuro newswire reported.
In Tuesday's trading session, stocks with significant exposure
to Argentina fell more than 1% on the Santiago Stock Exchange,
while the IPSA select index ended 0.03% lower.
Retail holding company Cencosud SA (CENCOSUD.SN), beverage
company Compania Cervercerias Unidas SA (CCU, CCU.SN) and bottler
Embotelladora Andina SA's (AKOA, ANDINA-B.SN) A shares declined
Tuesday. More than 20% of the companies' revenue comes from
Argentina.
Earlier in the session, Chilean Finance Minister Felipe Larrain
ruled out the possibility that investors' confidence in Chile will
be damaged by Argentina's move.
It is important that Buenos Aires takes steps in line "with
Argentine laws, international laws and international treaties,"
Larrain said.
Meanwhile, President Sebastian Pinera administration is in talks
with Argentine officials over Chilean state-owned energy company
Empresa Nacional del Petroleo SA's recently revoked oil concession,
said Moreno.
In March, Enap said it was considering possible legal steps
after the Argentine government revoked its Canadon
Perdido-Campamento concession in the province of Neuquen, which it
held in partnership with YPF.
Enap has invested more than $100 million in Argentina, Larrain
said Tuesday. The Chilean government will support Enap's interests
in that country, he added.
Enap's international unit, Enap Sipetrol Argentina, now holds
three southern Argentina concessions that it is exploring.
-By Graciela Ibanez, Dow Jones Newswires; 56-2-715-8929;
graciela.ibanez@dowjones.com