Bloomberg News

Venezuela Closes DirecTV Local Unit for Two Days (Update1)

March 07, 2007

DirecTV Group Inc. (DTV:US)'s headquarters in Venezuela will be forced to close for two days as the government penalizes the largest U.S. satellite television service for allegedly violating tax rules.

The closing of the offices of Galaxy Entertainment de Venezuela CA, which sells and operates the service in that country, took effect today, according to a statement by the tax authority distributed by e-mail. The agency found flaws in the company's books, the statement said, without elaborating.

The service is running normally, Wilmer Silva, a spokesman with the authority, said in a phone interview from Caracas. Calls to Galaxy's headquarters in Caracas weren't answered.

Shares of El Segundo, California-based DirecTV rose 5 cents to $22.71 at 4:02 p.m. in New York Stock Exchange composite trading. They have declined 8.9 percent this year.

To contact the reporter on this story: Guillermo Parra-Bernal in Caracas at gparra@bloomberg.net

To contact the editor responsible for this story: Emma Moody at emoody@bloomberg.net


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