Repsol says not mulling sale of majority YPF stake

MADRID, Nov 25 (Reuters) - Spain's largest oil company Repsol (REP.MC: Quote, Profile, Research) is not interested in selling more than a minority stake in its Argentine YPF unit, despite a report it had a new Chinese bid on the table for a majority holding.

The Spanish oil major, reported to be under shareholder pressure to cut back investments after a big drop in earnings, has received a renewed $14 billion offer for over 50 percent of YPF, in which Repsol has 84 percent, from China National Petroleum Corp (CNPC), according to El Mundo newspaper.

"Repsol won't consider any other option than the sale of a partial minority stake in YPF. Our priority is and remains a public offering," a spokesman for Repsol said on Wednesday.

State-owned CNPC had already offered to buy 75 percent of YPF from Repsol over the summer for $14.5 billion [ID:nPEK178920], but the Argentine government is thought to oppose Chinese control of its oil reserves.

Repsol is expected to announce an about 20 percent cut in its 2009 interim dividend on Wednesday afternoon to partly offset weak cash flow hit by heavy investments and a fall in profits of over 50 percent this year. (Reporting by Jonathan Gleave, editing by Will Waterman) ((jonathan.gleave@thomsonreuters.com; +34 91 585 2159; Reuters Messaging: jonathan.gleave.reuters.com@reuters.net))