Chavez threatens Sidor expropriation

CARACAS (Reuters) - Venezuelan President Hugo Chavez on Sunday threatened to expropriate steelmaker Ternium (TX.N: Quote, Profile, Research) Sidor if the company cannot reach an agreement over its nationalization "in the coming hours."

The announcement comes only a day after Venezuela said it would offer Ternium less than $800 million (400 million pounds) for its 60 percent stake in the company, less than a quarter of the $4 billion Chavez said the company wants for its holdings.

The aggressive stance could complicate Chavez's effort to take over the nation's largest steelmaker without creating a conflict with the allied government of Argentina, home of the Ternium steel conglomerate that controls Sidor.

"I will not pay $4 billion for that company," Chavez said, during his weekly Sunday broadcast.

"If they do not want to reach an agreement with us, on Tuesday I will sign an expropriation decree and take immediate control of the company."

Venezuela said on Sunday its preliminary valuation of Ternium's holdings was $800 million, though it would subtract from this amount any pending debts -- which could include a $200 million debt to state energy company PDVSA.

"I do not want to harm them ... but I just had to laugh when I read they wanted $4 billion. I said that cannot be, they must be crazy," Chavez said.

He ordered the nation's vice-president, who has overseen much of the Sidor talks, to meet with the company on Monday to seek an agreement.

Chavez last year nationalized the holdings of U.S. telecommunications giant Verizon Communications Inc (VZ.N: Quote, Profile, Research) and power generator AES Corp (AES.N: Quote, Profile, Research), making financial compensation to the companies that analysts said were fair.