CARACAS, Venezuela—The board of directors of Venezuelan telecom company CANTV rejected the US$1.4 billion takeover plan of U.S.-based power company AES. CANTV called the offer unsatisfactory.
CANTV, in which U.S.-based Verizon Wireless holds a 28.5-percent stake, owns 100 percent of Venezuelan mobile operator Movilnet.
Venezuela’s National Securities Commission approved the proposed deal, first announced in August, last week.
AES offered US$24 for each American Depositary Receipt for a 43.2-percent stake in CANTV. AES already holds a 7-percent stake in CANTV, and the deal would give it control of the company from Verizon, which currently has management control.
Shareholders have until the end of October to tender their shares under the AES offer.
