Argentina in nationalisation threat after blackouts

[Judi Lynn]

Last edited Fri Dec 20, 2013, 04:54 PM - Edit history (1)

Argentina in nationalisation threat after blackouts
By Staff and news wires
20 December 2013 17:57 GMT

Argentina on Thursday threatened to nationalise utility companies Edenor and Edesur after power outages blanketed large swaths of the capital and surrounding suburbs just ahead of the South American summer, according to reports.

The government of President Cristina Fernandez de Kirchner has expropriated several companies during her six years in office, including a water company, the oil company YPF and the country's biggest airline, Aerolineas Argentinas, Reuters reported.

The goverment comments may disappoint observers who had expressed optimism that an initial compensation deal struck with Repsol recently for its YPF stake showed new signs of economic pragmatism from a government with a history of haphazard government meddling and sovereign default.

"If they are not willing to give people the service they deserve, we will be willing to take over that service," cabinet chief Jorge Capitanich was quoted as saying by the news wire.

Companies had also begun taking a fresh look at Argentina amid what Tudor Pickering Holt last week called decreased political risk. The US Energy Information Administration estimates the country contains the world's second-largest shale gas reserves and fourth-largest shale oil reserves.

More:
http://www.upstreamonline.com/live/article1347301.ece

[Foolacious]

1. Headline and story are completely unrelated

Argentina's threat to nationalise utility companies seems unrelated to any suspension of teachers' salaries by the Mexican government.

[Judi Lynn]

2. I'm really slipping. So glad you pointed out the problem. Have corrected the Argentina story,

and will post the Mexican teachers' story immediately.

Got my wires crossed, didn't take enough time to do it right. Sorry.

Thank you.