Venezuelan Plan Shakes Investors

VENEZUELAN PLAN SHAKES INVESTORS
[SOURCE: New York Times, AUTHOR: Simon Romero and Clifford Krauss]
Verizon Communications had been looking to lighten its exposure to Latin America for some time when it struck a deal in April to sell investments in three properties in Puerto Rico, the Dominican Republic and Venezuela. Now, it probably wishes it had disconnected its Latin lines even sooner. The company could possibly lose up to several hundred million dollars, thanks to President Hugo Chávez of Venezuela, who threatened to nationalize the country’s main telephone and electricity companies. Investors reacted with alarm here and in markets in the United States and throughout Latin America on Tuesday as they measured the impact of the plan by Mr. Chávez to nationalize crucial areas of the economy. Memories of past nationalizations during another turbulent era, in places like Cuba and Chile, helped drive down the Caracas stock exchange’s main index by almost 19 percent.
http://www.nytimes.com/2007/01/10/business/worldbusiness/10venezuela.html
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* Venezuela Inc.’s Hostile Takeover
[SOURCE: New York Times, AUTHOR: Editorial Staff]
President Hugo Chávez of Venezuela -- the very portrait of a modern Latin American strongman -- is not content to exercise near-total political and military control of his country. Now he is tightening his grip on the Venezuelan economy. That’s bad news for foreign investors, but even more so for the Venezuelan people who will have to pay the price for an economy plagued by increasing inefficiency and corruption.
http://www.nytimes.com/2007/01/10/opinion/10wed2.html
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* Chavez's Economic Plans Set Latin Markets Reeling
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/09/AR2007010901717.html

* Venezuela's Leap Backward
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/09/AR2007010901456.html

* Venezuelan stocks dive after Chavez calls for nationalization
http://www.usatoday.com/printedition/money/20070110/venezeula10.art.htm