On ENTEL’s “Nationalization”

Don’t buy it. The government is just playing with language again.

What we have here is a supreme decree (DS#29544) authorizing the intervention of the company while an ownership position is being negotiated. Same goes for the three energy companies –Chaco, Andina and Transredes- the government claims it has “nationalized” too. When all they have done is to barely grasp 49%, 48% and 37% ownership respectively, paying top dollar for every share.

Not that I’m complaining that our dear leader is acting like a hypocritical capitalist.

It just bugs me to see “the masses” played-with on a daily basis, to hear ever more grandiloquent statements scaring off the money and to feel the general tedium of a market with no rules.

Alas, if Goni got statesmanship points by selling privatization with nice words (i.e. capitalización) Evo deserves some sort of recognition for selling whatever it is he’s selling with his nacionalizaciones.

Bolivian business briefs #1

And now a list of the business news making the rounds on the Bolivian dailies:

The government’s takeover bid on Transredes.- The GOB has finalized an offer or $40 per share held by minority shareholders of the natural gas and oil transport company. YPFB already holds a position on Transredes and is attempting to reach a majority stake in the company; Ashmore Energy International has made a counter-bid of $50 per share. Other international holding companies are involved, and developments are expected in the following days. [SP].

COMTECO’s successful bid on Elfec.- The Cochabamba-based telecom cooperative has successfully acquired a 52 percent stake on the regional electricity provider Elfec. The deal closed for $US 17 million in cash, tax and debt payments assumed by COMTECO. Previous bids were made on the national telecom company ENTEL, and a local cellular phone service provider VIVA. Previously COMTECO also attempted to launch its own cellular phone service but was met with opposition from regulatory authorities. The daily Opinión has an excellent interview with Fernando Gamboa, an executive of the acquiring company. [SP]

CBN under close watch on unfair competition charges.- The national brewery company has faced unfair competition charges (on purported “forced” exclusivity contracts) as of late, and the case is under scrutiny by regulatory agencies. [SP]

Lloyd Aéreo Boliviano receives additional aircraft.- The national carrier LAB is in the process of incorporating one Boeing 727-200 aircraft in a bid to restart its services in the following weeks. The leasing company is unknown at this time although it’s known that the aircraft belonged to the recently closed Champion Air US carrier. With the addition of this plane (which arrived to CBA on 04/23/08) LAB has two aircraft readily available for charter operations. [SP]

FEICOBOL opens its doors again.- The XXV version of Cochabamba’s international business fair -Feicobol- will open its doors between the 24th of April and the 4th of May, close to 750 companies will be present. [SP]