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MADRID May 3 Spain's foreign minister said on
Thursday Bolivia had made a legitimate decision to nationalise a
local subsidiary of Spanish power transmission company Empresa
Transportadora de Electricidad (TdE), owned by Red Electrica
Spain's economy minister had initially criticised the move
but said Bolivia had guaranteed compensation.
The Bolivian government said the company had failed to
invest enough in the country and that an independent body would
value within six months how much it should pay for the company.
"(It is) perfectly legitimate," Spain's Foreign Minister
Jose Manuel Garcia-Margallo told journalists in Madrid,
according to media reports.
He also said the move from Bolivian President Evo Morales
had nothing to do with the decision from Argentina's Cristina
Fernandez in April to nationalise YPF, the Argentine
subsidiary of Spanish utility Repsol.
Red Electrica indirectly holds 99.9 percent of TdE, which
reported net profits of 12.5 million euros ($16.4 million) last
year, less than 3 percent of Red Electrica's 2011 net profits.
($1 = 0.7603 euros)
(Reporting by Julien Toyer, editing by Jane Baird)