December 02, 2008

Call for making Sidor negotiations open to public

BNamericas reported that negotiations between the Venezuelan government and steel group Ternium to determine compensation for Sidor's nationalization should be open to the public.

Mr Pedro Rondón a board member and representative of class B shareholders held by company workers told BNamericas that "There should be a data room or due diligence so the Venezuelan government shows the public in a clear and transparent way Sidor's assets and how much they cost.”

Mr Rondón said that the Venezuelan government has until July 12 not June 30, as Mr Chávez said to take over Sidor operations. He said that "Nationalization was announced on April 9 and it was published in the official gazette on June 12. There, it indicates that the parties have one month to reach an agreement and establish the terms and conditions for a possible equity share.”

The deadline set by Mr Hugo Chávez president of Venezuela to transfer the Sidor steel plant to state control expired on June 30. The Ternium group, which controlled 59.7% of the company, is still in talks with the government regarding compensation. The official gazette also establishes that the parties can request an extension after that date adding that Ternium's Argentine executives withdrew from the Sidor plant on June 27.

According to the latest press reports, the parties may have already agreed on a price of USD 2 billion and Ternium might keep a 10% stake in Sidor.