Deadline for completing State takeover of Ternium-Sidor falls due today ... still far part on compensation

Caracas Daily Journal (Jeremy Morgan): The deadline for completing the state takeover of steelmaker Ternium-Sidor falls due today, amid speculation the two sides are still far apart on compensation. If that's the case -- and President Hugo Chavez sticks to his word -- the next step would seem to be outright nationalization.

The biggest shareholder in Ternium-Sidor is Argentine engineering group Techint, with 60 percent. Chavez wants the State, which already has 20 percent, to have a minimum 60 percent.

With employees and retirees holding 20 percent, that implies Techint handing over 40 percent. At issue is how much it gets in compensation. Ternium-Sidor's book value was $2.758 billion at the end of 2007, but Techint's initial demand was $4 billion in market value. Chavez opened with a meager $800 million, vowing he wouldn't pay more although Techint could stay on in a minority.

However, both sides are said to have budged, with Techint coming down to $2.4 billion. The government went to $1.6 billion -- but for 50 percent, leaving Techint with just 10 percent.