US ambassador tells Venezuela they must compensate Verizon

[NNN0LHI]

http://www.khaleejtimes.ae/DisplayArticleNew.asp?xfile=data/theworld/2007/January/theworld_January740.xml§ion=theworld

CARACAS - President Hugo Chavez threatened to eject the US ambassador if he meddled in Venezuela’s affairs after the diplomat reportedly said on Thursday the government must compensate companies it plans to nationalize.

The leftist president has pledged a wave of takeovers, including of US companies’ holdings in Venezuela, further straining frayed relations with the United States this month.

‘If he keeps interfering in Venezuelan matters that do not concern him, showing Venezuelans disrespect, then he could be declared persona non grata and would have to leave the country,’ Chavez said during a speech about socialism. snip

That appeared to be a response to Chavez, who said on Sunday he would not give any compensation for taking over the main telecommunications company until after its nationalization and even then would not pay a price based on foreign estimates of its value.

U.S.-based Verizon has a leading stake in the Venezuelan utility CANTV.

[The Anti-Neo Con]

1. Viva Chavez!

No compensation for the robber barons!

[Vidar]

2. Maybe after the US compensates every death squad victim in

Latin America. Not holding my breath.

[Tatiana]

3. They should be compensated at a fair (not inflated) value.

Then Chavez can tell them to get the hell out.

[Chulanowa]

4. I agree

Pay them what they're worth and kick their asses out. Doing otherwise is stealing - putting Chavez in the same boat as the people he's giving the boot.

[cyclezealot]

6. guess not the same as Bolivia.

Evo wants to regain control of their water utilities. The water utilities raised water rates and when people could not afford water they cut it off to Bolivian homes. Then instituted coin ooperated water spigots for whole communities. Moroles said the cities utilities were stolen due to former corrupt Bolivian officials who sold their water utilities after being bribed. Moreles said since the utilities were stolen , Bolivia would take them back. Bechtel fled in the middle of the night for their own safety, when the population started an uprising.

[Chulanowa]

7. Water's a different matter than cell phone service

Natural resources belong to the people of the country, and nobody else has any right to them. However, providers of what amounts to a luxury service, own that service.

If nothing else, it's best to not burn that bridge as the first course of action. A "Here's your money, now fuck off" leaves at least a little options for future business dealings, if it is so desired. Grabbing and nationalizing without compensation is a great way to end up with another American-led coup attempt.

[killbotfactory]

5. They will be compensated

Maybe the US should stop arrogantly telling Venezuelans how to run their own country?

[paulk]

8. how is asking for just compensation arrogant?

please explain.

[Judi Lynn]

9. They never miss an opportunity to involve their long, convoluted snouts.

So sad this propaganda just keeps spurting and gushing out. It only gives the idiots a fantasy foumdation from which to hold forth on message boards of their opposition.

As one posted article mentioned, this is a RE-nationalization. Here's a reference to the privatization:

.” He then specifically mentioned CANTV, saying, “Let’s nationalize it!”. CANTV, which trades under the ticker VNT on the NYSE, was taken private in 1991 under ex-president Andres Perez. It is currently run by a consortium that includes Verizon (VZ) (28% of VNT) and Telefonica de España (6%), as well as other minority shareholders.

Headlines on Tuesday were of the robber–baron type. Most commentators assumed that by nationalization, Chavez was simply going to expropriate the assets of VNT and presumably surround its head office with armed soldiers so that the capitalist pig board members couldn’t get to their desks anymore.....
(snip)

Chavez has been made out as a crackpot, a fool and a dictator by the western news services. We believe that this picture is biased largely by political interests and does not take into account the reality, particularly the financial reality, behind this undoubtedly controversial figure. He aims his public speeches towards his party faithful, and rhetoric of the sort seen on Monday is hardly new to dedicated Chavez-watchers. However, his “social revolution” has not turned its back on the ways of 21st century business, and his pragmatic side comes forward when doing deals with capital-driven states and companies. He drove a hard bargain with oil companies, but evidence suggests it has been a win-win situation, as the oil companies are still happy to do business inside Venezuela. The huge revenues accrued by the Venezuelan state is attractive to all arms of the banking world, and anecdotal reports from Caracas say there has never been a better time to set up financial shop in the capital. Chavez is no fool; nobody who gets re-elected in Latin America can be called naive about the ways of the real world.
(snip)

http://telecom.seekingalpha.com/article/23948

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CANTV shares rise on reports Venezuela to compensate
Wed Jan 10, 2007 10:07am ET

NEW YORK (Reuters) - Shares of Venezuelan telephone company CANTV (VNT.N: Quote, Profile , Research) jumped on Wednesday on reports that the government would pay compensation to companies that are included in President Hugo Chavez's nationalization plans.

Venezuela will pay compensation to companies in the telecommunications, oil and power industries that may be subject to nationalization, Bloomberg News reported, citing the chairman of the National Assembly finance committee.
(snip/...)

http://today.reuters.com/news/articleinvesting.aspx?type=hotStocksNews&storyID=2007-01-10T150635Z_01_N10255230_RTRUKOC_0_US-VENEZUELA-CANTV.xml