Thursday May 1st, 2008 / 20h30
LA PAZ, Bolivia (AP)--President Evo Morales said Thursday that he is nationalizing the leading Bolivian telecom company and will return four foreign-owned gas companies to state control.
Morales announced plans to buy back a majority of the former state company last year from Telecom Italia SpA (TIA), but negotiations have dragged out.
Terms of the nationalization announcement weren't immediately clear, though Morales said the company's employees would keep their jobs.
Celebrating May Day festivities in La Paz, Morales also announced the purchase of a majority stake in the energy company Andina, a unit of Spanish company Repsol YPF SA (REP).
Morales also issued a decree placing three more foreign-owned gas interests, including subsidiaries of BP PLC (BP) and Ashmore Energy International, under state control.
Bolivia privatized Entel in 1995 and handed 50% 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.
Telecom Italia has said it has spent more than that to build up Bolivia's largest cellphone and Internet networks while maintaining a commanding share of the now-deregulated telecommunications sector.
But the Bolivian government claims Telecom Italia fell short on the promised investment and owes some $25 million in back taxes.
Source : Dowjones Business News
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