Venezuela plans stock sale in break from socialist model

In a break from its socialist model, Venezuela’s government plans to open for private investment a number of state-owned companies in vital sectors as it seeks to address a need for capital for severely underinvested businesses

CARACAS, Venezuela -- In a break from its socialist model, Venezuela's government plans to open for private investment a number of state-owned companies in vital sectors as it seeks to address a need for capital for severely underinvested businesses. Scant details on the move are fueling doubts.

The government intends to sell between 5% and 10% of shares in various companies, some of which were nationalized by the late President Hugo Chávez in his bid to transform the South American country into a socialist state. But basic information for a public offering, including number of shares, stock price and the exchange in which a company will be listed, remain unclear ahead of the planned Monday sale.

Chávez's successor, President Nicolás Maduro, this week said the sales would be geared “fundamentally” toward local investors but foreign money could also flow into the companies, including telephone and internet service provider CANTV, which the government nationalized in 2007 after buying Verizon’s stake.

“We need capital for the development of all public companies,” Maduro said during a televised event Wednesday. “We need technology. We need new markets, and we are going to move forward.”