NEW YORK (MarketWatch) -- Venezuelan President Hugo Chavez's threat to nationalize "strategic" industries has raised two key questions for shareholders of AES Corp. (AES): does he mean it and if so, will the company be compensated?

Though Chavez didn't specifically mention Electricidad de Caracas in a speech Monday on nationalization, one of his ministers confirmed later on that EDC would be part of the plan. AES owns 82% of the Caracas electric utility.

The Arlington, Va.-based power company bought its EDC stake in 2000 for about $1.6 billion and analysts estimate it accounts for 8-12% of the company's annual earnings. It contributes roughly $100 million through dividends annually, accounting for about 7-10% of AES' parent-level cash flow.

Full Story...

Posted by rjorr at January 12, 2007 1:01 AM