Argentina leading steelmaker clashes with government over company control
A planned dividend payment by Argentine steelmaker Siderar was blocked by a judge on Thursday in the latest twist in a row linked to President Cristina Fernandez de Kirchner government's efforts to tighten control over leading companies.
The steel company had planned to pay a 2010 dividend of 359.5 million US dollars on Friday despite a ruling last month by the country's stock market regulator that effectively annulled the payment by declaring a shareholders meeting void.
“Siderar is not entitled to pay dividends using funds from ... its 'future dividend reserves,'” Judge Hernan Papa said in the ruling, a copy of which Siderar sent to the Buenos Aires Stock Exchange.
Siderar which is majority owned by Ternium SA, said it will appeal the decision, which marks a victory for the government of President Cristina Fernandez. The company said in a statement it would take swift legal action to defend its rights.
A dispute erupted between the steelmaker and Mrs Kirchner’s administration last month after the company resisted the government's choice to represent the Anses state pensions’ agency on the company's board of directors.
The Anses holds stakes in 42 companies as a result of President Cristina Fernandez's 2008 nationalization of private pension funds.
Soon after Siderar rejected the government's nominee to sit on its board, Mrs. Kirchner signed a decree to scrap a rule limiting the state to holding just 5% of voting rights on company boards, even when its stakes were greater.
The Anses holds a 26% stake in Siderar, which has challenged the government decree in court.
Shares in Siderar, which is controlled by Argentina's Techint conglomerate and has steel operations in Mexico and Argentina, have been suspended from trading on the Buenos Aires Stock Exchange due to an order by the securities regulator.
The collision course was emphasized when the Techint Group announced it was willing to buy the Argentine government’s 26% stake in Sidecar SAIC.
“We are willing to buy” the Argentine pensions’ agency stake, said Ternium chairman Paolo Rocca, whose family controls Technint, according to reports in Buenos Aires daily La Nacion.
Techint has filed a legal complaint against the Argentine government’s decree that allows the government to exercise full voting rights in companies in which it holds shares.
Suggested Stories
-
Jun 19th 2013
Blow for CFK: Supreme Court rules unconstitutional Counsel of Magistrates reform
-
Jun 19th 2013
Argentina bans British made ejection seats from local jet trainer IA-63 Pampa III
-
Jun 19th 2013
Malvinas C24 Argentina petitioners: Maria Angelia Vernet and Alejandro Betts
-
Jun 19th 2013
Argentine Coast Guard catches Chinese jigger with 180 tons of fresh squid
18 comments Feed
Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.
So,
as far as Argentinean *private companies* are concerned:
CFK has around 25% nationalisation through taking over the Pension Fund stake in the companies.
And it may take 10% to give to the unions.
And it can 'pack' the company board.
And it assumes full voting rights on the board.
Destruction of private industry in Argentina is assured.
I'm going to tell that there is nothing here that can be compared to, or is relative to the USA. What you think is a crisis in the US, is everyday life in Argentina.
:D
They should investigate her....to see how much money she is stealing!!
You're wrong, the US is in crisis, has been for a long time.
9,
Well said.
Reread the post. Look up concept of relativity too.
“Extraordinary that these projects of state involvement in large corporations are seen as wonderfully progressive in Scandinavia but outragouus in Argentina”
www.sweden.se/eng/Home/Business/Ethics_and_Business/Facts/CSR1/
You will see that the Scandinavian model of ethics and social provision through govermental frameworks for large corporations guards explicitly against, controls and prohibits all the things we see and criticise in Argentina.
You are SO WRONG, o gara.
Ethics have always been the problem in Argentina, but then again, ethics is a different animal in South America.
I thought you were expressing your own point of view.
Wrt your last sentence:
Not at all, it is my devout hope that Argentinean succeds in developing its own, home-grown modern industry.
And that it does this using the Swedish model once the country can afford to invoke it.
In the meantime I HOPE for rapid and *uncorrupted* development of *indigenous* and introduced industries operating at sufficient profit to the shareholders to keep their business in existence and expanding.
Geoff.
Always a pleasure watching your profound understanding of the murky English soul...........and your effective way of dealing with it :-)
;-)
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!