The plan, announced by Planning Minister Carlos Villegas, is consistent with a pledge by President Evo Morales and his Movement Toward Socialism party to increase state control over Bolivia's economy and natural resources. Villegas said that the state would reclaim control even if current owners are not eager to sell.

"We would like to buy (shares), but if they don't want to sell we're going to make other decisions so the Bolivian state will be able to exercise its right to be a 51% owner," said Villegas.

The ten target companies are involved in transportation, communications and energy, and include the country's largest telecom, Entel, national airline Lloyd Aereo Boliviano SA and energy companies Petrolero Chaco SA and Petrolero Andina SA.

Currently the companies are controlled by foreign investors, with the Bolivian people – not the government – holding under 50% of the shares. The Bolivian portion is held in a trust, managed by foreign financial institutions that cannot legally be touched by the state. To gain majority control, the government would need to purchase some of the foreign investors' shares, as well as change a number of laws and pay to buy out the Bolivian trust. Revenue from the Bolivian shares is used to pay an annual pension to citizens 65 years or older.

Source: The Associated Press - WDR/Intelecon Regulatory News