UPDATE: Venezuela Still Eyeing Santander Unit Nationalization
2009年3月21日 - 2:33AM
Dow Jones News
Venezuelan President Hugo Chavez dispelled speculation that he
would backtrack from the nationalization of the local Grupo
Santander unit and said his government would restart negotiations
with the Spanish banking giant.
"We're not retreating," Chavez said during a cabinet meeting
broadcast Thursday night. The nationalization of the local
Santander franchise, known as Banco de Venezuela (BVL.CA), "will
serve to strengthen our banking system," he said.
Chavez first announced the nationalization of the Banco
Santander SA (STD) unit in July, intervening as the Spanish group
started to negotiate the sale of the bank to a local financial
group.
There has been mounting speculation Chavez would back down from
the nationalization as he faces a financial crunch because of the
drop in the price of oil, which accounts for 50% of state
revenue.
Local research firm Econalitica says the bank, one of the
largest in Venezuela, could cost $890 million.
Spokesmen for Santander in Caracas and Madrid declined to
comment. There was no activity in Banco de Venezuela's shares on
the Caracas stock exchange, which traded at VEB0.4 ($0.18).
Faced with lower oil prices, Chavez has recently gone on the
offensive. This week the National Assembly passed a new law giving
him control over airports and seaports, some of which were under
the control of opposition leaders.
Earlier this month, he seized control of Cargill Inc.'s rice
operations in Venezuela and threatened to expropriate the country's
largest food producer. The government also seized control of a
plantation owned by Irish paper packaging giant Smurfit Kappa Group
Plc (SK3.DB).
"The recent round of nationalizations/expropriations in the food
industry is also hurting market sentiment," said Alberto Ramos, an
economist with Goldman Sachs.
The president has a long list of pending payments for his
nationalization drive, which according to Econalitica could cost
his government more than $11 billion.
The government has yet to pay for last year's nationalization of
the cement industry, including the assets of Mexico's Cemex (CX),
France's Lafarge SA (LFRGY), and Switzerland's Holcim Ltd.
(HOLN.VX), as well as the country's largest steel mill, formerly
controlled by Ternium SA (TX).
Their payments are likely on hold because of the decline in the
price of oil. Venezuela's oil basket in 2009 averages $36.75 per
barrel, well below the $60 per-barrel price the government used to
calculate its budget.
Despite this financial squeeze, the Santander outfit remains a
prized target for Chavez because of its nationwide branch network,
which he wants to use to bolster the presence of state-owned
banks.
The economic situation, which Chavez is expected to address on
Saturday by unveiling an economic package to respond to the decline
in oil revenue, hasn't deterred Chavez's "goal to have a strong
presence in the banking system," said Abelardo Daza, an analyst
with Equivalores, a Caracas-based brokerage firm.
"The government's priority right now is to keep the spending
programs, not pay for the nationalizations," Daza said.
-By Darcy Crowe, Dow Jones Newswires; (58) 212 905 6304;
darcy.crowe@dowjones.com