Venezuela's Chavez sets fast nationalization pace

By Brian Ellsworth

CARACAS (Reuters) - Venezuelan President Hugo Chavez is setting a faster than expected pace in his nationalization drive toward self-styled socialism, striking three takeover deals that push out U.S. firms in about a month.

Chavez, an ally of Cuba who is vehemently opposed to what he sees as U.S. imperialism, is boosting state involvement in Venezuela, the No. 4 supplier of oil to the United States, as he consolidates power after a landslide re-election last year.

Venezuelan authorities said on Tuesday they would buy the assets of U.S. power company CMS for $106 million, a day after cutting a similar deal with telecom giant Verizon for $572 million.

Last week the government signed an accord to buy the holdings of U.S.-based global power generation firm AES Corp. for $750 million despite analysts' predictions of protracted takeover battles.

"The government has showed it's clearly willing to move at a particularly fast pace to deliver on promises," said Patrick Esteruelas, an analyst with the Eurasia Group.

The deals came two weeks after Chavez received special powers to rule by decree and five weeks after he vowed to nationalize the telecommunications and power utilities.

The announcements on January 8, which Esteruelas dubbed "Red Monday," wiped out a fifth of the Caracas stock exchange's value.

Chavez quickly implemented the nationalizations by avoiding protracted legal battles and outright seizures, and, instead, striking buyout deals.