Chávez Comments See CANTV Shares Tumble

Shares of Venezuela’s largest private telco, Compañía Anónima Nacional Teléfonos de Venezuela (CANTV), tumbled on Monday following further comments by President Hugo Chávez regarding the company’s nationalization. ADRs of the telco fell 11.5% at the opening of trading in New York after Chávez said on Sunday that the government would not offer compensation ahead of seizing control of the company. CANTV is Venezuela’s only company to be listed in the US. Investors are now worried that US operator Verizon, which owns a 28.5% stake in CANTV, will not be fairly compensated for its share. Furthermore, analysts are speculating that Mexico’s América Móvil, which last year offered Verizon $677 million for its stake in CANTV, may withdraw its offer.