Venezuela telecom firm suffers from national talk

[Joanne98]

http://www.marketwatch.com/news/story/venezuela-telecom-firm-suffers-nationalization/story.aspx?guid=%7BABAD1F79-DFCE-4F6F-94C6-19B7DC1F29DA%7D
LATIN AMERICAN MARKETS
Venezuela telecom firm suffers from national talk

Carla Mozee, MarketWatch
Last Update: 7:48 PM ET Jan 8, 2007

SAN FRANCISCO (MarketWatch) -- Stock in Venezuelan telecommunications company CA Nacional Telefonos de Venezuela tumbled Monday after President Hugo Chavez announced plans to nationalize the company.

VNT16.84, -2.78, -14.2%) shares fell 14% to $16.84 before the New York Stock Exchange-listed shares were halted shortly after 3 p.m. Eastern time. The shares remained halted after market closed. Chavez' announcement came after the Caracas Stock Exchange closed for the session.

CANTV is Venezuela's biggest telecom company and offers fixed and wireless services. It's the only Venezuelan company to be included in the Bank of New York's list of American Depositary Receipts.
The stock had been rising on the expectation that Mexican billionaire Carlos Slim was going to buy the company, said David Riedel, president of Riedel Research Group, which provides analysis on companies in emerging markets.

"CANTV had been so strong ... that I think it's got even further to go," in terms of a decline, he forecast of the stock's near-term future.

Chavez said his government is also planning to nationalize the electricity sector, according to Dow Jones Newswires.

http://www.marketwatch.com/news/story/venezuela-telecom-firm-suffers-nationalization/story.aspx?guid=%7BABAD1F79-DFCE-4F6F-94C6-19B7DC1F29DA%7D