Bolivia orders nationalization of telecom Entel

[Judi Lynn]

May 1, 2:09 PM EDT

Bolivia orders nationalization of telecom Entel

LA PAZ, Bolivia (AP) -- President Evo Morales says he is nationalizing the leading Bolivian telecom company, Entel, which is a subsidiary of Telecom Italia SpA.

Morales announced plans to buy back a majority of the former state company last year, but negotiations with Telecom Italia have dragged out. Terms of Thursday's nationalization announcement are not immediately clear.

Bolivia privatized Entel in 1995 and handed 50 percent of the company to Stet International in exchange for the Italian company's promise to invest $608 million to improve service. Stet later merged with Telecom Italia.

http://hosted.ap.org/dynamic/stories/B/BOLIVIA_TELECOMS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2008-05-01-14-09-19

[Judi Lynn]

1. Bolivia announces takeover of Telecom Italia unit

UPDATE 1-Bolivia announces takeover of Telecom Italia unit
Thu May 1, 2008 2:21pm EDT


LA PAZ, May 1 (Reuters) - Bolivian President Evo Morales decreed on Thursday the nationalization of the country's largest telecommunications company, Entel, a unit of Telecom Italia (TLIT.MI: Quote, Profile, Research).

The government since last year had pushed the company to negotiate terms for a state takeover, and had issued millions of dollars of fines against the telephone operator, saying it had failed to provide quality rural service and invest in expansion.

The news came exactly two years after the leftist president announced his first major reform: the nationalization of the country's energy industry, including extensive natural gas production.

Morales issued a decree in April 2007 ordering Telecom Italia to sell part or all of its 50 percent stake in Entel to the Bolivian state.

More:
http://www.reuters.com/articlePrint?articleId=USN0121819820080501

[Judi Lynn]

2. Bolivia President Morales To Nationalize Euro Telecom Unit -AP

Bolivia President Morales To Nationalize Euro Telecom Unit

Thursday May 1st, 2008 / 19h15



NEW YORK -(Dow Jones)- Bolivian President Evo Morales Thursday announced the nationalization of Empresa Nacional de Telecomunicaciones, or Entel, the local unit of Italy's Euro Telecom Internacional, the Associated Press reported.

The announcement follows an earlier one Thursday declaring that the govenrment is in process of purchasing majority stakes in local affiliates of foreign oil companies operating in the country.

One of those deals would give Bolivia's state run energy company YPBF a stake of 50% plus one share in Andina, the local affiliate of Spain's Repsol (REP), Bolivia's energy minister Carlos Villegas reportedly said.

Local press reports say the government will confirm later Thursday similar deals to take over a local energy affiliate of British Petroleum (BP) as well as the oil and gas pipeline company Transredes, controlled by the UK's Ashmore Energy International.

http://www.easybourse.com/bourse-actualite/bp/bolivia-president-morales-to-nationalize-euro-telecom-GB0007980591-445817