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Venezuelan state buys power firm | Venezuelan state buys power firm |
(about 1 hour later) | |
The Venezuelan government has bought the country's leading privately-owned power provider, marking a new phase in its nationalisation programme. | The Venezuelan government has bought the country's leading privately-owned power provider, marking a new phase in its nationalisation programme. |
The state is to pay $740m (£378m) for the 82% stake in Electricidad de Caracas owned by US company AES Corp. | The state is to pay $740m (£378m) for the 82% stake in Electricidad de Caracas owned by US company AES Corp. |
In private hands since 1885, the firm provides power to the capital, Caracas. | |
Key resources such as power and oil are being brought under state control to fulfil President Hugo Chavez's vision of a "socialist economy". | Key resources such as power and oil are being brought under state control to fulfil President Hugo Chavez's vision of a "socialist economy". |
Public ownership | Public ownership |
The country's leading telecommunications firm is also being nationalised. | |
The Chavez government argues that public ownership of key industries will enable Venezuela to channel its natural resources better for the benefit of its people and tackle poverty more effectively. | |
However, the nationalisation drive has worried foreign investors and affected the country's stock market. | However, the nationalisation drive has worried foreign investors and affected the country's stock market. |
Despite taking control of Electricidad, ministers said that minority investors would be permitted to keep their shares if they wanted. | Despite taking control of Electricidad, ministers said that minority investors would be permitted to keep their shares if they wanted. |
"We are preserving the integrity of the minority shareholders," said Rafael Ramirez, president of state-owned oil firm Petroleos. | "We are preserving the integrity of the minority shareholders," said Rafael Ramirez, president of state-owned oil firm Petroleos. |
In a ceremony in Caracas, AES president and chief executive Paul Hanrahan said the process had been conducted in a "fair" manner, in line with Venezuelan law. | In a ceremony in Caracas, AES president and chief executive Paul Hanrahan said the process had been conducted in a "fair" manner, in line with Venezuelan law. |
"We strongly believe in Venezuela and in EDC as a company," he said. | "We strongly believe in Venezuela and in EDC as a company," he said. |
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