Venezuela Chavez threatens to cut ties with Spain

CARACAS (Reuters) - Venezuelan President Hugo Chavez threatened on Friday to cut diplomatic ties with Spain if the former colonial power's king does not apologize for telling him earlier this month to "shut up" at a summit meeting.

Speaking at a rally for a referendum on Sunday on expanding his powers, Chavez also warned he could start to consider acting against Spanish companies in the OPEC nation if King Juan Carlos fails to meet his demand.

Chavez's threats were an escalation of the spat with Spain and came as he intensified disputes with Colombia and the United States.

He has already frozen diplomatic ties with Spain over the king's rebuke and threatened to take over some of the multi-billion dollar investments of Spanish companies that operate in the banking, telecommunications and oil sectors.

"If this does not happen (that the king apologizes), then I won't have anything to do with Spain," Chavez said.

(Reporting by Saul Hudson; editing by Todd Eastham)