From Expat-Village.com
Banco Santander in talks with Venezuela
By
Aug 1, 2008, 10:00
Expat Village is edited and published by Iain Williams in Caracas
and Porlamar, Margarita Island, Venezuela.
A story from The Associated Press
MADRID, Spain: Banco Santander bank said Friday it was in talks with Venezuela over the future of its subsidiary, Banco de Venezuela, which President Hugo Chavez says he intends to nationalize.
The Spanish bank said it had planned to sell the Venezuelan financial entity to a group of investors in the South American country, but had not reached a final deal.
Banco Santander said in a statement it had since learned of the Venezuelan government's interest in the bank and was "in conversations to this end at the moment."
Spain's government said it had no plans to intervene in the announced nationalization.
"There has been a dialogue and a negotiation and we hope that in a short space of time an agreement will come about between the government of Venezuela and Santander," Deputy Prime Minister Maria Teresa Fernandez de la Vega said.
De la Vega said she has spoken with Banco Santander President Emilio Botin, who had confirmed negotiations for the sale of Banco de Venezuela were under way.
In a televised address Thursday, Chavez said he decided to nationalize after learning that Banco Santander had contacted a local bank to sell the institution. He said the local bank asked for authorization from the government, but that he, "as the head of state," said no.
"We are going to take back the Bank of Venezuela to put it at the service of Venezuelans," Chavez said.
Banco Santander purchased the Banco de Venezuela in 1996. The financial institution is the country's No. 3 bank with nearly 3 million customers and some US$11 billion in assets.
Chavez had threatened to nationalize Venezuelan subsidiaries of Spanish banks after King Juan Carlos told him to "shut up" at a summit last November. But just last week he wrapped up a European tour with a hug-and-kiss makeup visit to Spain, where he was greeted warmly by the king at his summer residence on the island of Mallorca.
Chavez later flew to Madrid for talks with Prime Minister Jose Luis Rodriguez Zapatero. The two leaders said their relationship was renewed and any past tension was behind them.
But the Venezuelan leader Thursday claimed the Spanish news media would use the opportunity to damage relations once again.
The announcement was a lead news item on Spanish media all day Friday.
Chavez has already nationalized its largest telephone, electricity, steel and cement companies and has assumed majority control over four major oil projects.
Associated Press writer Jorge Sainz contributed to this report.
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Expat Village is edited and published by Iain Williams in Caracas
and Porlamar, Margarita Island, Venezuela.
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