Colombia stocks sink on Chavez's takeover threat

BOGOTA, March 6 (Reuters) - Colombian stock prices sank on Thursday after Venezuelan President Hugo Chavez threatened to take over assets of Colombian companies located in the neighboring country.

Colombia's benchmark IGBC index .IGBC fell about 1 percent to 8,915.85. Food company Nacional de Chocolates NCH.CN, which has operations in Venezuela, led the sell-off with a share price loss of 4.86 percent to 13,700 pesos.

Venezuela and Ecuador are in a diplomatic dispute with Colombia that started on Saturday when Colombian forces entered Ecuadorean territory to kill a top leftist rebel leader.

"We're going to make a map ... of the Colombian businesses here in Venezuela. We could nationalize some, take them over, we aren't interested in Colombian investments here," Chavez said on Wednesday at a joint news conference in Caracas with Ecuador President Rafael Correa.

Chavez made similar threats against Spanish companies in a diplomatic confrontation with that country last year, but the reprisals never materialized.

Venezuela and Ecuador have sent troops to their borders with Colombia and cut off diplomatic ties. Chavez also said that Venezuelan investments in Colombia could be sold off.

Trade between Colombia and Venezuela has been limited to bare necessities with Venezuela allowing in only perishable goods. (Reporting by Javier Mozzo, writing by Hugh Bronstein, editing by Walker Simon; )