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Friday, January 7, 2011

DEALTALK-Petrobras's Galp hopes face price, pact risks, (ENI), (GALP), (NYSE: PBR)

Petrobras's (PETR4.SA) hopes of buying Italian oil major Eni's (ENI.MI) cornerstone stake in Portugal's Galp (GALP.LS) may be scuppered by a complex investor pact and discord over a price tag that could top $5 billion. Brazil's state-run Petrobras (PBR.N) said last week it is considering buying Eni's 33.34 percent stake in Galp, expanding its deepwater exploration globally. "Petrobras is mulling the idea but it's still early days, especially with the new government transition under way. So far no price evaluation has been made," a senior source close to the deal told Reuters.