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Argentina Siderar shares leap after Venezuela deal

Thu May 7, 2009 12:40pm EDT

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BUENOS AIRES, May 7 (Reuters) - Shares of Argentine steelmaker Siderar SID.BA soared more than 16 percent in early afternoon trading on Thursday after its parent company, Ternium (TX.N), said it completed the transfer of a subsidiary to the Venezuelan government.

The Buenos Aires Stock Exchange suspended trade in Siderar due to the abrupt rise.

Ternium, a leading Latin American steelmaker, agreed to receive a compensation of $1.97 billion for its Sidor shares and completed a transfer of its 59.7 percent interest in Sidor to the Venezuelan government.

Venezuela took over Ternium unit Sidor in 2008. Ternium had planned to retain a 10 percent stake in Sidor, but in the deal announced on Thursday it said it transferred its entire interest.

In New York, Ternium's shares leapt 38 percent to $14.51. (Reporting by Jorge Otaola, Writing by Fiona Ortiz)



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