Venezuela: Ternium could accept 10 pct in takeover

CARACAS, April 20 (Reuters) - Steelmaker Ternium (TX.N: Quote, Profile, Research, Stock Buzz) (TX.N: Quote, Profile, Research, Stock Buzz) could accept reducing its majority stake to 10 percent in negotiations over the nationalization of its Venezuelan unit, a Venezuelan minister said on Sunday.

President Hugo Chavez announced this month he would take over the unit, Venezuela's largest steelmaker, known as Ternium Sidor, and talks over compensation and the new make-up of the Venezuelan company have begun.

"They have made it clear they are willing to maintain a relationship -- as a minority partner with a 10-percent stake," mining minister Rodolfo Sanz told state television.

Ternium, a New-York listed company based in Luxembourg and controlled by Argentine conglomerate Techint, owns 60 percent of the company, while the government and workers have 20 percent each.

Chavez, who has nationalized swathes of the economy last year, typically pays a fair price to compensate companies in takeovers, according to equities analysts who say Ternium Sidor could be worth about $4 billion.

In addition to its value, the Venezuelan unit is strategically important for Ternium because it also supplies its plants in Mexico and Argentina.

Sanz sought to allay fears the nationalization would end such exports.

"We have told them we are prepared to keep supplying raw materials to their plants and to keep a relationship with the companies that the Ternium group has in Mexico, Argentina and other countries," he said.

Chavez, who had threatened to take over Ternium Sidor last year, took action this month during prolonged contract talks with workers that had led to strikes and sometimes violent protests.