CANTV ADS target slashed

21 Dec 2005

Investment bank Santander Investment has lowered its target price for American Depository Shares (ADS) of Venezuelan telco CANTV, due to the continuing uncertainty over its pension payments, according to Reuters. Santander Investment has slashed the ADS target from USD17.80 to USD14.50. The change is principally due to uncertainty over the outcome of an ongoing lawsuit brought against the company over the handling of its pensions fund more than eight years ago. In July this year the telco was ordered to adjust the pensions of 3,408 union members to reflect the country’s minimum wage. It petitioned the Supreme Court to review the ruling, but the appeal was dismissed in October and it is now waiting for a decision on how much it must pay.

Venezuela, CANTV