December 02, 2008

Ternium could maintain a stake in Venezuela unit

Reuters reported that steelmaker Ternium may maintain a stake in its Ternium Sidor unit, which is being taken over by the Venezuelan government.

Ternium parent company Argentine conglomerate Techint in a statement said that Ternium which is listed in New York and has its legal base in Luxembourg has set up a negotiating committee with the Venezuelan government to agree on compensation value.

The company previously said a government Sidor joint transition committee would take over operations at the Venezuela unit while the terms are agreed.

Techint said that Ternium Sidor is a major supporter of other industrial enterprises in the region and in that framework, Ternium could maintain a participation in the capital of Sidor.

Mr Paolo Rocca president of Techint met with Argentine Ms Cristina Fernandez President of Argentina who is an ally of Venezuela's President Hugo Chavez. Techint has asked Ms Fernandez to help it negotiate a fair price for Ternium, but the Argentine government has not made any public statements.

Argentina was caught by surprise last week when Venezuela announced it would nationalize Ternium Sidor, which had reached an agreement with Chavez last year to avoid being taken over.

Techint in a statement said that "Mr Paulo Rocca is committed to make his best effort to achieve an agreement that is positive for both sides, based on the friendly relationship between Argentina and Venezuela.”