Venezuelan President Hugo Chavez made good on his plans to
nationalize major businesses. Yet instead of kicking foreign executives
out of the country, he bought them out, striking deals with U.S. energy
companies CMS and AES, which owned power producer EDC, as well as with
U.S. telecom Verizon. Mexican wireless giant America Movil, on the verge
of buying Verizon's stake in Venezuelan phone company CANTV, backed
off just in time. Soon after, Chavez said he would nationalize the
country's supermarkets.
"The recovery of CANTV ... forms part of the (efforts) the
government has carried out in an accelerated manner to regain its
position in strategic companies."
--Jorge Rodriguez, vice president of Venezuela (Reuters)
"It wasn't in our plans to part with EDC. It's with
a heavy heart that we part with EDC."
--Paul Hanrahan, president and chief executive of AES (Associated
Press)
"We'd like to say our negotiations were professional,
balanced and friendly. The agreement represents a compromise between the
two sides."
--Joseph Tomasik, vice president of CMS (Associated Press)
"It turns out very well for the American investors."
--Luis Gustavo Richard, financial analyst, InterAcciones Casa de
Bolsa (Associated Press)
"My government has said that it is always better when this is
a process of negotiation in which both parties coincide on the outcome,
and it seems in this case that has happened."
--U.S. Ambassador to Venezuela William Brownfield (Associated
Press)
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