President Chávez' Government speeds up nationalization plans
Tuesday 13th
Govn't pays Verizon USD 572.2 million for stake in Cantv
Venezuelan government officials and US Verizon Corp late Monday initialed a memorandum of understanding under which the Venezuelan State is purchasing 28.51 percent of telecoms firm Cantv, currently in the hands of the multinational.
The sale price was USD 572.2 million, according to Minister of Telecommunications Jesse Chacón, who attended the ceremony together with Venezuelan Executive Vice-President Jorge Rodríguez.
The sum amounts to USD 17.85 per each American Depositary Shares (ADS) purchased under the transaction, which represent 224,410,604 shares.
Pdvsa purchases Seneca from another US company
Venezuelan state-run oil holding Pdvsa initialed a memorandum of understanding to purchase the stake US CMS Energy Corp owns in power company Seneca, which operates in northeastern Nueva Esparta state.
The move came as a part of President Hugo Chávez Government's program of nationalizations launched last January to take control of strategic firms in key sectors of the economy, Reuters said.
CMS Energy owns a 70 percent stake in Seneca, in the insular state of Nueva Esparta. The company was organized in 1998, when state firm Cadafe sold power generation, transmission and distribution facilities.
Exxon, Venezuelan Government have not talked about nationalization
US oil company Exxon Mobil will possibly have not time enough to complete its talks with the Venezuelan Government within the deadline set by the Executive to take over most billionaire projects in the Orinoco oil belt, said Tuesday corporate CEO Rex Tillerson.
President Hugo Chávez announced beginning February that the operations related to heavy oil improvement in southern Orinoco oil belt would be nationalized by May 1st, Reuters noted.
"We have not discussed this item with regard to the new schedule," Tillerson said during a press conference.
Wednesday 14th
Venezuelan State is to meet Cantv labor liabilities
Hugo Chávez' government purchased US Verizon's 28.5 percent stake in Venezuela's largest telecoms firm Cantv at a price more than USD 100 million below the takeover bid Mexican billionaire Carlos Slim made for the shares last year. Why? Apparently the answer lies with Cantv's labor liabilities.
No official figures have been disclosed on the labor liabilities Cantv has pending with pensioners, but preliminary estimations put the figure at USD 600 million.
"Cantv has created a fund to afford such liabilities when the relevant courts rule the company should pay, but if the final amount is as high as preliminary estimations, such fund is falling short from its goal for more than USD 100 million," said lawyer Horacio Mendoza, adding that the fact that the Venezuelan state purchased both assets and liabilities is normal.
Cantv value exceeds USD 1.7 billion
The Venezuelan State needs to disburse USD 1.7 billion to purchase all of the shares in the country's largest telecoms company Cantv, based on estimations made by economist Mauricio Valley.
The expert claimed that this amounts is the result of 1.2 million stocks at a price of USD 2.55 per share, which was the price the Venezuelan government paid to purchase US Verizon's 28.5 percent stake in Cantv last Monday, when both Hugo Chávez' government and the US corporation initialed a memorandum of understanding for transfer of the shares.
Both transfer of Verizon shares and purchase of the remaining stocks are scheduled to begin within the next 30 days.
The Venezuelan state, following purchase of US Verizon's 28.5 percent stake in Venezuela's largest telecoms firm Cantv, now holds 35.1 percent of shares -as it already owned a 6.6 percent of stocks. Consequently, the Venezuelan State is now in full control of the corporation.
Moody's cuts Orinoco oil belt forecast to negative
Moody's kept its B1 rating for strategic partnerships operating in heavy-crude oil Orinoco belt, namely Sincor, Petrozuata, Ameriven and Cerro Negro, unchanged, but cut forecasts from stable to negative.
The move came following President Hugo Chávez' recent instructions that by May 1st such strategic partnerships have to migrate to joint ventures under which the Venezuelan state is to hold a majority stake.
According to Chávez, this amounts to the "nationalization" of these partnerships, which were organized under article 5 of the nationalization law in the 1990's. For the partnerships to become joint ventures, a new nationalization law is required, and it is expected to be dictated under Chávez' special ruling powers.
Takeover plans for telecommunications business
The Venezuelan Government is to make in one-month term a takeover bid for telecommunications company Cantv.
Based on the government plan, corporate shareholders will be offered the same price of USD 17.85 for American Depositary Shares (ADS) that was paid this week to US Verizon for its stake in the company, Reuters reported.
The Venezuelan Government is ready to buy, if appropriate, up to 100 percent of the securities in the domestic largest telecommunications holding, said Minister of Telecommunications Jesse Chacón.
Total to discuss Sincor case next year
French oil company Total is not quite sure of completing at the end of this year the talks with the Venezuelan Government on upcoming plans to take over Sincor, a heavy oil project operated by the corporation.
"Probably, the talks on Sincor in Venezuela will not finish by the end of 2007," said Total CEO Christophe de Margerie.
Total holds a 47-percent stake in Sincor, one of the projects for heavy oil improvement in the Orinoco oil belt, southern Venezuela, Reuters noted.
State-run oil holding Petróleos de Venezuela (Pdvsa) owns 38 percent of Sincor; the remaining 15 percent is in the hands of Norwegian Statoil.
Thursday 15th
Chávez threatens to take over food vendors
President Hugo Chávez Wednesday announced takeover of any major or small vendor of staples failing to comply with the price controls imposed by the government, adding that such a directive would be enacted by February 16th.
"Give me the first excuse to nationalize the first warehouse, the first large outlet, the first food retailer chain or whatever and make it available for the people," Chávez exclaimed during an event to grant pensions on new beneficiaries of the Venezuelan Welfare Institute (IVSS).
Businessmen fear nationalization threats may have negative effects
Noel Álvarez, chair of the Venezuelan Services and Trade Council (Consecomercio), Thursday claimed that President Hugo Chávez' threat to nationalize food vendors involved in speculation or hoarding "drives away capitals and discourages investment" so badly needed in the country for economic expansion.
"The government is sovereign and is the manager of the country, and as such, it may take any decision it deems appropriate." However, he showed confidence that the government "threats" will not materialize.
President Chávez urges to speed up lands seizure
During a ceremony of the community cabinet called "All the driving forces at high revolution," President Hugo Chávez insisted on the need to speed up seizure of lands.
"The National Lands Institute must proceed forthwith with an inspection -under the Lands Law- and then take action, make a quick survey and authorize the occupation of such lands to make them productive," he ordered.
He also urged community councils to make a nationwide tour in order to assess community problems and asked the People's Power Presidential Committee to collect and deal with the findings.
Govn't pays Verizon USD 572.2 million for stake in Cantv
Venezuelan government officials and US Verizon Corp late Monday initialed a memorandum of understanding under which the Venezuelan State is purchasing 28.51 percent of telecoms firm Cantv, currently in the hands of the multinational.
The sale price was USD 572.2 million, according to Minister of Telecommunications Jesse Chacón, who attended the ceremony together with Venezuelan Executive Vice-President Jorge Rodríguez.
The sum amounts to USD 17.85 per each American Depositary Shares (ADS) purchased under the transaction, which represent 224,410,604 shares.
Pdvsa purchases Seneca from another US company
Venezuelan state-run oil holding Pdvsa initialed a memorandum of understanding to purchase the stake US CMS Energy Corp owns in power company Seneca, which operates in northeastern Nueva Esparta state.
The move came as a part of President Hugo Chávez Government's program of nationalizations launched last January to take control of strategic firms in key sectors of the economy, Reuters said.
CMS Energy owns a 70 percent stake in Seneca, in the insular state of Nueva Esparta. The company was organized in 1998, when state firm Cadafe sold power generation, transmission and distribution facilities.
Exxon, Venezuelan Government have not talked about nationalization
US oil company Exxon Mobil will possibly have not time enough to complete its talks with the Venezuelan Government within the deadline set by the Executive to take over most billionaire projects in the Orinoco oil belt, said Tuesday corporate CEO Rex Tillerson.
President Hugo Chávez announced beginning February that the operations related to heavy oil improvement in southern Orinoco oil belt would be nationalized by May 1st, Reuters noted.
"We have not discussed this item with regard to the new schedule," Tillerson said during a press conference.
Wednesday 14th
Venezuelan State is to meet Cantv labor liabilities
Hugo Chávez' government purchased US Verizon's 28.5 percent stake in Venezuela's largest telecoms firm Cantv at a price more than USD 100 million below the takeover bid Mexican billionaire Carlos Slim made for the shares last year. Why? Apparently the answer lies with Cantv's labor liabilities.
No official figures have been disclosed on the labor liabilities Cantv has pending with pensioners, but preliminary estimations put the figure at USD 600 million.
"Cantv has created a fund to afford such liabilities when the relevant courts rule the company should pay, but if the final amount is as high as preliminary estimations, such fund is falling short from its goal for more than USD 100 million," said lawyer Horacio Mendoza, adding that the fact that the Venezuelan state purchased both assets and liabilities is normal.
Cantv value exceeds USD 1.7 billion
The Venezuelan State needs to disburse USD 1.7 billion to purchase all of the shares in the country's largest telecoms company Cantv, based on estimations made by economist Mauricio Valley.
The expert claimed that this amounts is the result of 1.2 million stocks at a price of USD 2.55 per share, which was the price the Venezuelan government paid to purchase US Verizon's 28.5 percent stake in Cantv last Monday, when both Hugo Chávez' government and the US corporation initialed a memorandum of understanding for transfer of the shares.
Both transfer of Verizon shares and purchase of the remaining stocks are scheduled to begin within the next 30 days.
The Venezuelan state, following purchase of US Verizon's 28.5 percent stake in Venezuela's largest telecoms firm Cantv, now holds 35.1 percent of shares -as it already owned a 6.6 percent of stocks. Consequently, the Venezuelan State is now in full control of the corporation.
Moody's cuts Orinoco oil belt forecast to negative
Moody's kept its B1 rating for strategic partnerships operating in heavy-crude oil Orinoco belt, namely Sincor, Petrozuata, Ameriven and Cerro Negro, unchanged, but cut forecasts from stable to negative.
The move came following President Hugo Chávez' recent instructions that by May 1st such strategic partnerships have to migrate to joint ventures under which the Venezuelan state is to hold a majority stake.
According to Chávez, this amounts to the "nationalization" of these partnerships, which were organized under article 5 of the nationalization law in the 1990's. For the partnerships to become joint ventures, a new nationalization law is required, and it is expected to be dictated under Chávez' special ruling powers.
Takeover plans for telecommunications business
The Venezuelan Government is to make in one-month term a takeover bid for telecommunications company Cantv.
Based on the government plan, corporate shareholders will be offered the same price of USD 17.85 for American Depositary Shares (ADS) that was paid this week to US Verizon for its stake in the company, Reuters reported.
The Venezuelan Government is ready to buy, if appropriate, up to 100 percent of the securities in the domestic largest telecommunications holding, said Minister of Telecommunications Jesse Chacón.
Total to discuss Sincor case next year
French oil company Total is not quite sure of completing at the end of this year the talks with the Venezuelan Government on upcoming plans to take over Sincor, a heavy oil project operated by the corporation.
"Probably, the talks on Sincor in Venezuela will not finish by the end of 2007," said Total CEO Christophe de Margerie.
Total holds a 47-percent stake in Sincor, one of the projects for heavy oil improvement in the Orinoco oil belt, southern Venezuela, Reuters noted.
State-run oil holding Petróleos de Venezuela (Pdvsa) owns 38 percent of Sincor; the remaining 15 percent is in the hands of Norwegian Statoil.
Thursday 15th
Chávez threatens to take over food vendors
President Hugo Chávez Wednesday announced takeover of any major or small vendor of staples failing to comply with the price controls imposed by the government, adding that such a directive would be enacted by February 16th.
"Give me the first excuse to nationalize the first warehouse, the first large outlet, the first food retailer chain or whatever and make it available for the people," Chávez exclaimed during an event to grant pensions on new beneficiaries of the Venezuelan Welfare Institute (IVSS).
Businessmen fear nationalization threats may have negative effects
Noel Álvarez, chair of the Venezuelan Services and Trade Council (Consecomercio), Thursday claimed that President Hugo Chávez' threat to nationalize food vendors involved in speculation or hoarding "drives away capitals and discourages investment" so badly needed in the country for economic expansion.
"The government is sovereign and is the manager of the country, and as such, it may take any decision it deems appropriate." However, he showed confidence that the government "threats" will not materialize.
President Chávez urges to speed up lands seizure
During a ceremony of the community cabinet called "All the driving forces at high revolution," President Hugo Chávez insisted on the need to speed up seizure of lands.
"The National Lands Institute must proceed forthwith with an inspection -under the Lands Law- and then take action, make a quick survey and authorize the occupation of such lands to make them productive," he ordered.
He also urged community councils to make a nationwide tour in order to assess community problems and asked the People's Power Presidential Committee to collect and deal with the findings.
posted by Alice at
Saturday, February 17, 2007
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home