Remaining NY CANTV shares suspended

15 May 2007

The New York Stock Exchange informed Venezuelan incumbent fixed line operator CANTV on 11 May that it was suspending trading with immediate effect of CANTV’s American Depositary Shares (ADS), due to the recent nationalisation of the company, reports BNamericas, quoting a statement by the telco yesterday. According to NYSE, the ADSs ‘are no longer suitable for continued listing due to the current circumstances following the completion of the tender offer by the local government.’ On 9 May Venezuela’s government completed a takeover of 86.2% of CANTV after the close of its tender offer on the NYSE and Caracas Stock Exchange (BVC). The government has committed to paying USD1.33 billion for 79.62% of the company, including the 28.5% stake that it agreed to buy from US telco Verizon in February; the government previously owned a 6.6% stake. The state is scheduled to pay for the tendered shares on 18 May and plans to elect a new board of directors on 21 May and expects to take control of the company by 5 June.

Venezuela, CANTV