Investors fear Colombia pressured Ecopetrol into a $4 billion bailout
Published : Sunday, 28 February, 2021 at 7:13 PM Count : 141
The deal, as investors from Bogota to New York see it, has all the markings of a cash-strapped federal government forcing a state-run company to bail it out.
Colombia's largest oil company, Ecopetrol SA, an electrical utility giant known as ISA, will hand over about 4 4 billion to the government in exchange for control of another state-equipped garment. From the moment the word of the transaction was leaked in early January, questions began to arise from surprised investors - how did the deal fit into Ecopetrol's business model? How will the price tag be disposed of? - and the stock began to lag behind the wide assemblies in oil drillers around the world.
Philip Bayon understands why there is skepticism but he also wants to avoid it. In a video interview in Bogot, the CEO of Ecopetrol vehemently denied that he came under government pressure to buy the ISA, arguing that the acquisition was a key part of a plan to protect the company's core oil drilling business by adding a new one.
"If someone tells me, 'You're doing this because the government is telling me to do it,' the answer is no," Bayon said. "I'm doing it because I'm sure it's a good business. My faithful duty is to preserve the value of the company."