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Spain says new case of nationalization, in Bolivia, can scare off international investors
MADRID (AP) ' Spain has warned Bolivia that its nationalization of a Spanish company that owned most of its electricity grid will hurt the Latin American country's image among international investors.
But Economy Minister Luis de Guindos drew a distinction between this case and Argentina's process of nationalizing YPF, until now an affiliate of Spanish energy giant Repsol SA.
De Guindos said Wednesday from Brussels that Bolivia has agreed to pay compensation for nationalizing the Spanish subsidiary.
Red Electrica de Espana, S.A. spokesman Antonio Prada denied Bolivia's accusations the local unit did not invest enough in the grid.
Prada added that Bolivia only accounted for 1.5 percent of the company's revenues.
Red Electrica shares were down 0.8 percent at '32.07 ($42.38) in early trading.