Chávez Threatens To Nationalize Telephone Company
August 17, 2006; Page A6

CARACAS, Venezuela -- President Hugo Chavez threatened to nationalize
Venezuela's largest telecommunications company if it doesn't comply
with a court order to make pension payments to former employees.

In a televised speech, Mr. Chávez said he had given executives of
Compania Anonima Nacional Telefonos de Venezuela, or CANTV, a
"prudent" grace period to comply, but he didn't specify how long that
period would be.

Verizon Communications Inc. owns a 28.5% stake in CANTV, according to
its last annual filing with the Securities and Exchange Commission.
Spokesman Peter Thonis declined to comment on the situation.

The Venezuelan Supreme Court ruled in July 2005 in favor of more than
3,400 unionized CANTV workers in a long-running pension dispute. The
court said the workers' pensions had to be increased to take into
account currency devaluations, inflation and minimum-wage increases
since 1999.

CANTV has contested part of the court ruling and is awaiting a study
from Venezuelan authorities to determine how much it will make in back
payments to retired workers.

Company officials couldn't be reached for comment.

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