Repsol says best to keep Gas Natural stake

MADRID, May 13 (Reuters) - It is in Repsol's (REP.MC: Quote, Profile, Research) best interest to keep hold of its 30.8 percent stake in Gas Natural (GAS.MC: Quote, Profile, Research), the oil group's chairman Antonio Brufau said on Tuesday.

There has been regular speculation in the market that Gas Natural could merge with Iberdrola (IBE.MC: Quote, Profile, Research) to create a Spanish energy champion -- a deal that would dilute Repsol's holding in the gas and electricity company.

"The best thing is for Repsol to keep its stake in Gas Natural," Brufau told a meeting of company executives. (Reporting by Joe Ortiz; Writing by Jane Barrett)