Citigroup (NYSE:C) Likes BG (LSE:BG) Over Repsol After Petrobras (NYSE:PBR) Swap

After the recent share swap between Petrobras (NYSE:PBR) and the Brazilian government, Citigroup (NYSE:C) said it likes the assets held by BG (LSE:BG) better than those held by Repsol YPF SA.

Citi analyst Mark Fletcher said, BG is “more sensitive to any positives in the Petrobras valuation.”

The reason is the assets held by Repsol would have to be revalued before an initial public offering were to be worked out.

Fletcher added that BG is trading at a percent fair value while Repsol is “10 percent rich.”