NEW YORK—U.S. power company AES has withdrawn its US$1.4 billion hostile takeover bid for Venezuela’s CANTV. CANTV’s shareholders approved a 15-percent share buyback last month to fend off the takeover.
CANTV’s board of directors agreed on a plan to repurchase 15 percent of its stock at US$30 per American Depositary Receipt (ADR). In addition, an extraordinary cash dividend of US$4.89 per ADR would be paid.
Verizon Communications said it backed the plan. CANTV, in which U.S.-based Verizon holds a 28.5-percent stake, owns 100 percent of Venezuelan mobile operator Movilnet.
AES offered US$24 for each ADR for a 43.2-percent stake in CANTV. AES already holds a 7-percent stake in CANTV, and the deal’s success would have given it control of the company from Verizon, which currently has management control.
