November 1, 2001
Investors can sometimes be forgiving to a company when it has spotted a lucrative business deal, when that opportunity may lie outside its core area of business activity, and when things are going well. So when US power giant AES, with its reputation for boldly pushing into risky new markets around the world, unveiled a takeover bid for Compañía Anónima Nacional de Teléfonos de Venezuela, the unloved and undervalued national telephone network, some observers were left in awe.
Only a year earlier, AES deftly scooped up local utility Electricidad de Caracas for $1.7 billion in Latin America's first successful hostile takeover. In the process AES won 'Bolivarian' prais
Over a year ago, AES mounted Latin America's first succesful hostile takeover when it bought Venezuela's largest power utility. It is back for more, but investors wonder if its bid for telephone company CANTV makes any sense.