EFE reported that Argentinean Italian conglomerate Techint is pondering the possibility of filing an action against Venezuela, after President Mr Hugo Chávez Wednesday suspended the talks on the terms under which the holding is to sell to the Venezuelan state a majority stake in the country's largest steelmaker Sidor.

The report said that “Techint officials said they were likely to bring an action before the International Centre for Settlement of Investment Disputes, the arbitration tribunal of the World Bank, after Techint was surprised" by the arbitrary and unilateral decision taken by Mr Chávez.”

Mr Fabio Steinberg a spokesman for Techint Group told Reuters that “Talks between Ternium SA and the Venezuelan government are at an impasse. Chavez's tone has hardened. He's threatening total expropriation of Sidor. It's an impasse. Techint will file the complaint with the World Bank's International Center for Settlement of Investment Disputes.''

Mr Steinberg said that Techint will ask the tribunal to help it reach an accord with Venezuela or issue a ruling on financial compensation.

The Venezuelan president on Wednesday suspended negotiations with Techint and said he would pay the real value and at the pace that we can.