Venezuela Threatens to Nationalize CAVTV

AP ^ | 8/15/6

[SmithL]

CARACAS -- President Hugo Chavez on Tuesday threatened to nationalize Venezuela's largest telecommunications company if it does not comply with a court order to make owed pension payments.

Chavez said he would give Compania Anonima Nacional Telefonos de Venezuela, or CANTV, a grace period to comply, but did not specify how long that period would be.

"If they don't want to comply with that, I am going to nationalize CANTV," Chavez said in a televised speech.

CANTV has shares traded on both the Caracas and New York stock exchanges. It is the dominant provider of fixed line telephone service in Venezuela and also has large shares of the mobile phone and Internet markets.

[Antoninus]

Translation: "I am going to nationalize CANTV."

These pinheads are nothing if not predictable.

[Dallas59]

Why even warn?

[Uriah_lost]

They should begin destroying all the equipment they can since they are going to lose it all anyway.

[kingu]

They should begin destroying all the equipment they can since they are going to lose it all anyway.

If they do that, they'll be sued by investors in the United States, who of course won't be able to win a judgment against Venezuela taking over the company. Catch 22's are fun.

[Uriah_lost]

Oh dang....That sucks. I have to figure that's one reason to nationalize a company listed on the NYSE.

[bigfootbob]

Make work project for lawyers

[marron]

During his attempted coup in 1992, one of the issues that drove him and his cohort to rise up against the government was the sale of a portion of CANTV to GTE.

[cricket]

This has all the feeling of a 'Demrat Warning' and at least, a 'Hillary Alert'. . .not for 'us'; but to the American Public who may be inclined to vote for a Democrat.

The Demrats eyes get misty as they watch Chavez. His example may be their latest idea, now mantra. . .of America 'changing directions'. . .

[VeniVidiVici]

Castro light.

Er, um, maybe Castro heavy.

[theymakemesick]

"CANTV is earning plenty. It's a private company."

I can't wait to see what happens when it's nationalized. Cheers

[ClaireSolt]

Back to the two cans on a string.

[Nathan Zachary]

Go ahead Chavez, "nationalize" it. Within 6 months a working phone will become a rare find.
who needs phones anyways. A party line phone will work just fine, just like in the good old days.

I'd LOVE to see Chavez do it. It would be a "riot" to watch the news on TV, and see live footage of Chavez being strung up, burned and beaten Islamic style.

[Eccl 10:2]

"I'd LOVE to see Chavez do it. It would be a "riot" to watch the news on TV, and see live footage of Chavez being strung up, burned and beaten Islamic style."

---

'Zackly. Those who refuse to learn the lessons of history are doomed to repeat it. I gues every generation needs to see this type of disaster unfortunately - I feel bad for the hard-working percentage of Venezuelans - the producers. They are about to fall to the consumers, and the outcome is certain. It won't be pretty.

[WoofDog123]

obviously nationalization is the goal here for vz, but don't think for a second that many latin american companies are not willing to simply steal/disregard pension obligations if they think they can get away with it or wait the employee out and buy him out cheaper. this isn't the US, and worker really have little practical recourse if they plan to eat.

[AmericaUnite]

How's the stock doing? Investors better think twice about owning stocks from socialist/communist countries.

[Muttering Mike]

Two very key parts to this:

1. CANTV is also the largest provider of high speed internet access. You can imagine the implications..the internet and bloggers are the "X" factor that until now Chavez has not been able to control.

2. What this article is not clear on is that Verizon/CANTV is WAITING FOR A COURT DECISION to tell them what they have to pay for pensions. It is completely in the hands of the chavista courts to make a decision on the pension plan.



Chavez is trying to demonize CANTV because it (the pensions) was a key part of his "revolution" from the beginning, and conveniently he can angle to nationalize and therefore control internet and information within the country, just like the gag laws on the media currently in place.