Venezuela To Nationalize Power Company

Government To Pay More Than $700 Million For Controlling Stake In Nation's Largest Private Electric Company

(AP) 
President Hugo Chavez's government moved to nationalize Venezuela's largest private electric company on Thursday, signing an agreement to buy a controlling stake in Electricidad de Caracas from its U.S.-based owner, AES Corp.

The sale agreement was signed by Paul Hanrahan, president and chief executive of Arlington, Va.-based AES, during a ceremony at the presidential palace in Caracas, agreeing to pass the company's 82-percent stake in the utility to the Venezuelan government within three months.

Venezuela will pay $739.3 million for AES' share in Electricidad de Caracas, said Rafael Ramirez, president of state oil company Petroleos de Venezuela SA. He said the company is valued at $900 million as a whole.

Ramirez said minority shareholders would have "the option to stay with us in the new state company or, of course, to sell us their shares."

"We are preserving the interest of the minority shareholders," said Ramirez, who signed along with Vice President Jorge Rodriguez on behalf of the government.

The deal marks the first of multiple nationalization moves planned by Chavez since he was re-elected in December. The Venezuelan president also plans to nationalize other smaller companies in the electrical sector, as well as the country's largest telephone company, CA Nacional Telefonos de Venezuela, CANTV.

Electricidad de Caracas has been privately owned since its founding in 1885. U.S.-based AES, a global power company that today has businesses in 26 countries, bought a majority stake of Electricidad de Caracas in a hostile takeover in 2000.

[tbweb]

-- Agnim

Americans refused to address their dependence on foreign oil in a serious way. American oil money has created the Hugo Chavez, Mahmoud Ahmadinejad 2 headed monster! Maybe now Americans will finally get the message! Americans are financing their own destruction with their dependence on foreign oil. If it was not for that addiction which drove oil prices through the roof, these clowns would not even be around! Opps! Did I just call them a name? ...

[agnim]

Posted by tbweb at 12:41 AM : Feb 09, 2007

You are obviously afraid of the truth, right?

How about our so-called leaders calling people, pygmy, thugs, terrorists, dictators, etc? LOL

Yes our dear leader did call the Korean leader a 'pygmy' as attempt to insult.

If I were you, I'd be MORE CONCERNED ABOUT WHAT A LEADER DOES than the silly words they use.

And our leader is responsible for the slaughter hundreds of thousands and wasted tens of thousands of American lives and limbs in the process!

Chavez IS NOT KNOWN FOR KILLING any of his own countrymen or for killing others!

Show yourself mature and wise by BEING MORE CONCERNED ABOUT ACTION!

[feelfree1]

tbweb,

Re: "The Venezuela President is suppose to be a clean cut classy representative of the Venezuela people"

You must be quite arrogant to take it upon yourself to decide what kind of leader the Venezuelans should elect.

Venezuelans have elected this man, overwhelmingly, 3 times. He has shown himself to be a great leader for the Venezuelan people, and for the rest of the world for that matter.

[perception5]

Venezuela is the new Cuba. I feel sorry for the people in Venezuela as this dicator consolidates his power.
In a couple of years the people of Venezuela won't have to bother to vote. Hugo will pick their leaders for them.....
It sad when you see some liberal Dems defending these actions/moves.........

[processor2]

Kind of like how Hillary Clinton wants to nationalize health-care in America.

I guess all Socialists/Communists think alike.

........

[crater7]

THE NERVE OF CHAVEZ, CALLING OUR PRESIDENT, THE DEVIL. THIS GUY, SHOULD BE HUNTED DOWN, AND PUT IN GITMO. THIS GUY IS A ROOKIE, COMPARED TO THE POST ON THIS WEB SITE. JUST TO NAME A FEW, ANTI CHRIST, MURDERER, NAZI, LIAR, CRIMINAL, THIEF, JUST A FEW FOUND ON THIS VERY SITE. JUST GOES TO SHOW, THAT THIS GUY, NEEDS TO READ THIS SITE, TO LEARN THE INTERNATIONAL PROTOCAL STANDARDS, AND LEAVE THE NAME CALLING TO US.

[tbweb]

-- feelfree1

President Chavez looks like an amature, a rookie, an angry thug! The Venezuela President is suppose to be a clean cut classy representative of the Venezuela people, a role model for kids and students around the world! Powerful people get their staff to do their dirty work for them, Mr Chavez needs to learn the rules of the road if he's going to be playing with the Big Dogs!! He's more like a Castro wannabe! Calling any world leader a devil at the UN is completely unacceptable and does not meet international protocol standards. It did more damage than Mr Chavez knows! Temporary pleasure for long term losses!

[bluestardad]

On the most recent account of corruption CBS News Reported via, KVTV Dallas article that billions of gallons of oil are being stolen because Iraq has no meters in place to gauge how much oil is being produced, pumped, or loaded on to tankers in the gulf. This has been going on now in Iraq for years. How can anyone know how much money or oil has been stolen under the watch of Coalition forces, it makes the United Nations Oil for food scandal pale in comparison. If you combine this blatant theft with the Slant drilling being done by Iraqi%u2019s neighbors there are unaccountable billions of dollars being stolen in Iraq right now. What type of management or leadership has been responsible in Iraq for the last four years? Iraqi and American Dollars by the tons have been sent to Iraq and lost, stolen or squandered. Who has been in charge of this oversite where is the accountability?

[bluestardad]

What isn't nationalized in America? Think about it!

[lars008-2009]

hugo chavez is just another kim jong il wannabee.......

the ressemblance is amazing....... hahahahahahaha

[lars008-2009]

*** when did communism become a monarchy???

n korea passes power from father to son to son???
cuba passes power to brother???
whill chavez follow his hero castro and set up his own monarchy????

i thought we were all equal??? right comrade????

http://www.nk-news.net/index.php
http://www.nk-news.net/extras/insult_generator.php

[feelfree1]

tbweb,

Re: "US President a devil at the UN, on the world stage shows his gutter mentality."

Mr. Chavez did not call the satanic and mass-murderous Bush-puppet "a" devil, on the world stage.

Chavez called the bloodthirsty Bush eunuch "the" devil, on the world stage.

Sometimes we must call a spade, a spade.

This place smells of sulphur!

[tbweb]

The problem I have with President Chavez is that he has no class and is not diplomatic. Calling the US President a devil at the UN, on the world stage shows his gutter mentality. Leaders with class make their points without making issues personal like that. President Chavez does good deeds for sure, but as a package he leaves much to be desired. Mr Chavez would be more acceptable and powerful he took a class on basic manners!

[feelfree1]

Re: "President Hugo Chavez's government moved to nationalize Venezuela's largest private electric company on Thursday"

Very smart move! Power utilities are natural monopolies. They are typically heavily subsidized with public funds, and they sqeeze consumers at every opportunity, in order to deliver absurd bonuses to executives.

We need look no further than Enron to see examples of nearly everything that can go wrong with private sector management of what is really a public resource.

I am glad to see growing movement in the U.S. towards public power ownership. It is a far better value to the general public.

Again, Mr. Chavez offers the Bush puppet a lesson in leadership.