24/10/2008 02:14
Buenos Aires Herald - Nota - Argentina - Pág.2
Spanish grumble about pension fund plan

>Transport secretary: Aerolíneas Argentinas will not be expropriated

The adminisst aton of Spanish Prime Minister José Luis Rodriguez Zapatero has reportedly started diplomatic contacts with Argentina in an attempt to open discussions about Spanish companies, which could be affected by the plan to nationalize the private pension funds (AFJP).

The speculation came on the same day executives of the Spanish-owned airliner Aerolíneas Argentinas complained about the Argentine government's plan to expropriate the company.

The government "is kicking" the Spanish owners of Aerolíneas Argentinas (AR) out of the company, majority stakeholder Marsans said.

President Cristina Fernández de Kirchner meanwhile yesterday defended the take-over of the AFJPs as necessary to protect retirement savings that have been eroded by the global financial crisis.

The President said: "All the resources would be used to improve the future of the retirees." Using a conciliatory tone, she called on Argentines "to co-operate to overcome the country's problems." The President spoke while hundreds of AFJP employees, fearing dismissal, gathered in Plaza de Mayo to protest the nationalization of the pension funds. The government has vowed not to sack pension fund employees and is offering them jobs in the ANSeS social secutiry agency.

The Spanish-owners of AR also felt like they were getting the boot. "They are kicking us out and we will see if this concludes in the best possible way, which is my hope," Gerardo Díaz Ferrón, one of the two men who control unlisted travel firm Marsans told a Spanish radio station.

The comments came following ru mours that the government had decided to seize Aerolíneas Argentinas because talks with Marsans had broken down. The President was reportedly on the phone to Spanish government officials on Wednesday night.
The National Assessment Court yesterday told Congress that Aerolíneas-Austral has a "negative value' of 832 million dollars. The airline's assets are 489 million dollars in the red, the report said.

The head of the tribunal, Daniel Eduardo Martin, said: "Technically, we don't have a price for the companies, as their value is negative." Transport Secretary Ricardo Jaime said that copies of all the reports of the tribunal will be handed to Marsans, "so that they can check the details of the process, and we will re quire the presentation of the valuation made by Credit Suisse, because we also want to know the result of their reports on the company's value." Jaime flatly denied that the govemment will expropriate Aerolíneas Argentinas. Congress must vote on the price reported by the tribunal, Jaime said.

"We have strictly complied with what the law says. That means the rescue of Aerolíneas and Austral through the purchase of shares," he added.

Credit Suisse, hired by Marsans, has evaluated the net worth of Aerolíneas Argentinas and partner airline Austral and come up with a sum, 350 million dollars, that the government is arguing is massively inflated.

The Argentine government and Marsans agreed on October 14 to extend talks for one more month to set a price for the state takeover of the country's bi t_ est airline after Marsans agreed to sell its 95 percent stake in July.

Meanwhile the purported talks promoted by the Rodríguez Zapatero administration are aimed at "expressing Spain's willingness to reach an agreement with the companies," a Madrid government official who requested not to be named told European press agencies yesterday.

Madrid's contact with Buenos Aires was necessary to provide "trust and guarantees" to the Spain-based firms that have seen their shares plummet after the President announced on Tuesday her government's move to send a bill to Congress. The decision sent stocks and bonds into a tailspin amid fears capital markets would dry up.

Spanish newspapers blasted Ar gentina, whom they blame for the plunges in Madrid's financial markets.

"The Ibex was toppled by the Argentine crisis," read a story in Madrid daily El Pats with the headline "the Argentine nonsense." "Up to this moment, there has only been an announcement, which has had a strong impact given the situation in the international markets, but we still have to see how this initiative is implemented," said the Spanish official yesterday, adding that the Argentine government has already discussed the situation with some foreign companies "and has offered all sorts of guarantees." Spanish Ambassador to Argentina, Rafael Estrella, refrained from making any comments. He told local media: "I can't really feel responsible for a rumour." The previous day, Federal Planning Minister Julio de Vido met with representatives of Spanish companies Telefónica and Repsol and told them "not to worry" about any renationalization plan. Madrid has not ruled out that Spanish President Rodríguez Zapatero would meet with Femández de Kirchner to discuss the situation at the Ibero-American Summit in El Salvador to take place next week Spanish banks Santander and BBVA have seen their expansion plans in Latin America turn sour as concerns surface over another potential Argentine default, analysts said.

Shares in Spanish companies with investments in the region fell sharply, Santander and BBVA- shareholder of Consolidar AFJP - lost 17 and 14 percent respectively over the last two days. Other companies retreated, including Telefónica and Repsol.
With agencies