Sacyr

In the meantime, Sacyr scrambled unsuccessfully to persuade banks to refinance its debt.

A $3 Billion Deal Ends Spanish Feud Ilan Brat 2011

Thanks to the purchase, Sacyr, also based in Madrid, said it would be able to pay off half of that debt, which matures Wednesday, and refinance €2.45 billion of the debt through January 2015.

A $3 Billion Deal Ends Spanish Feud Ilan Brat 2011

More Heard on the Street: Repsol Rescue of Sacyr Has Risks As Sacyr's total debt had ballooned to €20 billion, Repsol Chairman Antonio Brufau resisted demands from the construction firm to boost dividends at a time when Repsol was focusing on expensive exploration projects abroad to increase hydrocarbon reserves.

A $3 Billion Deal Ends Spanish Feud Ilan Brat 2011

Earlier this year, Sacyr sought to exert pressure on Repsol through other means.

A $3 Billion Deal Ends Spanish Feud Ilan Brat 2011

The possibility that Sacyr was unable to service its debt was "not any good news for all our shareholders."

A $3 Billion Deal Ends Spanish Feud Ilan Brat 2011

Near the peak of Spain's decade-long housing bubble, in 2006 Sacyr took out the large loan to pay nearly €27 a share to buy 20% of Repsol's shares—a price higher than Repsol shares have ever reached since then.

A $3 Billion Deal Ends Spanish Feud Ilan Brat 2011

Sacyr and Pemex said they wanted to see the roles of chairman and chief executive, currently both held by Mr. Brufau, separated, and wanted Repsol to take measures to enhance its market valuation, including boosting its dividend.

A $3 Billion Deal Ends Spanish Feud Ilan Brat 2011

On Tuesday, Sacyr said its pact with Pemex had ended, and in the conference call, Repsol executives said Sacyr would see its Repsol board representation reduced to one from three.

A $3 Billion Deal Ends Spanish Feud Ilan Brat 2011

Mr. Martínez said he expects to sell the stake in a matter of months, possibly at a price lower than Sacyr sold it to Repsol.

A $3 Billion Deal Ends Spanish Feud Ilan Brat 2011

The stake reinforces Mr. Brufau's position atop Repsol, as it practically ensures Sacyr won't be able to vote him out.

A $3 Billion Deal Ends Spanish Feud Ilan Brat 2011