Repsol Board Moves to Expel Board Representatives

  Chairman Antonio Brufau moved to expel board representatives ofSacyr Vallehermoso SA and Petroleos Mexicanos, Repsol said in a regulatory filing. Sacyr and Pemex, as the Mexico City-based company is known, said they would challenge the decision.

 “Directors may not engage, on their own or someone else’s behalf, in activities whose exercise constitute competition with the company,” according to the new text of article 19 of the company board rules. Anyone will be barred who has “a significant stake or holds a management position in a competitor or another concerted company,” the rule says.

Brufau is fighting to retain control of Spain’s biggest oil company after Sacyr, the largest investor with a 20 percent stake, and Pemex, with almost 10 percent, said they want the company to split the roles of CEO and chairman and focus on its oil business to boost returns. The board approved the changes at a six-hour meeting in Madrid at which it endorsed the management of Brufau, who is also chief executive officer.

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