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Total To Sell Stake In Spain's Cepsa For $5B

PARIS (AP) - Total SA said Wednesday it has agreed to sell its stake in Spanish oil company Cepsa to Abu Dhabi's state-owned oil company for euro3.7 billion ($5 billion).

Abu Dhabi's International Petroleum Investment Company will buy Total's 48.83 percent stake in Cepsa for euro28 per share plus a dividend of euro0.50 per share.

IPIC is Cepsa's second largest shareholder with a 47.06 percent stake.

Cepsa's shares shot up 24 percent to euro28.2 on the Madrid stock exchange after the offer was announced. They closed at euro22.8 Tuesday.

The offer puts the company's value at euro7.5 billion.

Spanish economic newspaper Cinco Dias said IPIC first bought into Cepsa in the late 1990s and then bought a 36 percent stake from Banco Santander in 2009.

(This version CORRECTS APNewsNow. Updates with details, Cepsa share price, corrects IPIC is second-largest shareholder.)

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