Héctor Magnetto
Encyclopedia
Héctor Horacio Magnetto is an Argentine executive associated with the Clarín Group
, the country's largest media company.
in 1944, and enrolled at the University of La Plata, where he earned a degree in accountancy
with high honors. He became affiliated with the pro-industry political party, the Integration and Development Movement
(MID), and on March 2, 1972, was hired as an advisor to Ernestina Herrera de Noble
, the director and majority owner of Clarín
, the most widely circulated newspaper in Latin America. Despite its large circulation, Clarín suffered financial difficulties when Mrs. Noble inherited the director's post from its founder, Roberto Noble
, as his widow. She turned to one of the latter's most prominent allies, economist and wholesaler Rogelio Frigerio
, who lent Clarín US$10 million in 1971. The paper continued to endorse Frigerio's centrist MID platform, which centered on government support for infrastructure investment and import substitution industrialization. On Frigerio's advice, Mrs. Noble brought in Magnetto, who took later charge of the newspaper's finances.
The young accountant persuaded Mrs. Noble to shed superfluous assets, such as a company helicopter, and to begin negotiations with the Mitre, Paz, and Peralta Ramos families (proprietors of La Nación, La Prensa
and La Razón
, respectively) to take part in a federally sponsored establishment of a newsprint
manufacturer. The plan, which would cut costs by eliminating the need for imported newsprint, ultimately resulted in the establishment of Papel Prensa in 1978.
Magnetto served as CEO of Papel Prensa
, on an alternating basis with the director of La Nación, during subsequent years. He displaced most of his fellow MID-oriented colleagues at the newspaper in 1981, and afterwards became President and CEO. Keen to political trends, Magnetto spearheaded Clarín's vocal opposition to the administration of the populist-turned-conservative President, Carlos Menem
, after the latter's re-election in 1995. Shortly before elections in elections in 1999, he reportedly declared that we'll choose the next president this time. He nevertheless maintained cordial relations with the runner-up of that campaign, Justicialist Party
Governor Eduardo Duhalde
, who was appointed President by the Argentine Congress following the December 2001 riots in Argentina that led to his predecessor's (Fernando De la Rua
) resignation. Magnetto was able to parlay this understanding into Duhalde's support for a "Law of Preservation of Cultural Patrimony," which limited foreign ownership of local media to 30%, and thus protected the Clarín Group's core businesses. The group had suffered steep losses during the 1999-2002 crisis, and the bill (passed in July 2003, and dubbed the "Clarín Law" by detractors), helped solidify its finances.
The company recovered alongside the Argentine economy in subsequent years, and by 2006, had acquired Cablevisión, its Multicanal cable unit's leading competitor. Magnetto, however, was beset by worsening health problems, chief among them a dignosis of esophageal cancer
in early 2007, which for a time led to speculation as to his continuity as CEO of the Clarín group, as well as to a possible dispute over his 30% share in the company. Magnetto reacted positively to treatment, and underwent subsequent speech therapy.
He was on hand for the October 22, 2007, Clarín IPO in the Buenos Aires Stock Exchange
, and continued to preside over the group. Former President Néstor Kirchner
alleged that, during the 2008 Argentine government conflict with the agricultural sector
, Magnetto offered a supportive spin on the administration's case for higher export tariff
s, in exchange for an amenable treatment of the media group's acquisition of a significant stake in Telecom Argentina
(a potential anti-trust law violation); the hitherto cordial relations between Kirchnerism
and the Clarín Group soured during the conflict. Subsequently, Magnetto was one of 200 individuals investigated by the government for money laundering
, mainly related to tax evasion
.
Grupo Clarín
Grupo Clarín is the largest media conglomerate of Argentina.-Overview:Established as such in 1999, it includes the Clarín newspaper , Papel Prensa , the Artear media company, and numerous other media outlets.Rooted in the successful, 1945 launch of the centrist daily,...
, the country's largest media company.
Life and career
Magnetto was born in ChivilcoyChivilcoy
Chivilcoy is a city in Buenos Aires Province, Argentina, the head town of the Chivilcoy Partido. It has 60,762 inhabitants according to the ....
in 1944, and enrolled at the University of La Plata, where he earned a degree in accountancy
Accountancy
Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in...
with high honors. He became affiliated with the pro-industry political party, the Integration and Development Movement
Integration and Development Movement
The Integration and Development Movement or MID is a political party in Argentina.-Historical overview:Flying to Caracas, Venezuela in 1956, Argentine wholesaler and publisher Rogelio Frigerio secretly negotiated an agreement between his friend, the centrist UCR's 1951 vice-presidential nominee...
(MID), and on March 2, 1972, was hired as an advisor to Ernestina Herrera de Noble
Ernestina Herrera de Noble
Ernestina Herrera de Noble is a prominent Argentine publisher and executive. She is the largest shareholder of the Grupo Clarín media conglomerate and director of the flagship Clarín newspaper.-Life and times:...
, the director and majority owner of Clarín
Clarín (newspaper)
Clarín is the largest newspaper in Argentina, published by the Grupo Clarín media group. It was founded by Roberto Noble on 28 August 1945. It is politically centrist but popularly understood to oppose the Kirchner government...
, the most widely circulated newspaper in Latin America. Despite its large circulation, Clarín suffered financial difficulties when Mrs. Noble inherited the director's post from its founder, Roberto Noble
Roberto Noble
Roberto Noble was an Argentine politician, journalist and publisher, perhaps best known for having founded Clarín, long Argentina's leading newsdaily and the most or second-most circulated in the Spanish-speaking world....
, as his widow. She turned to one of the latter's most prominent allies, economist and wholesaler Rogelio Frigerio
Rogelio Frigerio
Rogelio Frigerio was an Argentine economist, journalist and politician.-Background and early career:Rogelio Frigerio was born in Buenos Aires in 1914 to Gerónimo Frigerio and Carmen Guanzaroli...
, who lent Clarín US$10 million in 1971. The paper continued to endorse Frigerio's centrist MID platform, which centered on government support for infrastructure investment and import substitution industrialization. On Frigerio's advice, Mrs. Noble brought in Magnetto, who took later charge of the newspaper's finances.
The young accountant persuaded Mrs. Noble to shed superfluous assets, such as a company helicopter, and to begin negotiations with the Mitre, Paz, and Peralta Ramos families (proprietors of La Nación, La Prensa
La Prensa (Buenos Aires)
La Prensa is an Argentine daily newspaper.Based in Buenos Aires, it was founded on 18 October 1869 by José C. Paz. La Prensa ranked among the most widely circulated dailies in Argentina in subsequent decades, earning a reputation for conservatism and support for British interests in Argentina...
and La Razón
La Razón (Buenos Aires)
La Razón is a local newspaper distributed in the public transportation system in Buenos Aires, Argentina. It was founded in 1905 by Argentine journalist Emilio Morales an as an afternoon and evening newspaper in broadsheet format. The daily was acquired by a prominent news editor, José A...
, respectively) to take part in a federally sponsored establishment of a newsprint
Newsprint
Newsprint is a low-cost, non-archival paper most commonly used to print newspapers, and other publications and advertising material. It usually has an off-white cast and distinctive feel. It is designed for use in printing presses that employ a long web of paper rather than individual sheets of...
manufacturer. The plan, which would cut costs by eliminating the need for imported newsprint, ultimately resulted in the establishment of Papel Prensa in 1978.
Magnetto served as CEO of Papel Prensa
Papel Prensa
Papel Prensa is the largest Argentine manufacturer of newsprint, furnishing 75% of the local market in the staple. The public–private partnership became the focus of one of a series of controversies between Clarín and Kirchnerism in 2010.-Establishment:Papel Prensa originated in the establishment...
, on an alternating basis with the director of La Nación, during subsequent years. He displaced most of his fellow MID-oriented colleagues at the newspaper in 1981, and afterwards became President and CEO. Keen to political trends, Magnetto spearheaded Clarín's vocal opposition to the administration of the populist-turned-conservative President, Carlos Menem
Carlos Menem
Carlos Saúl Menem is an Argentine politician who was President of Argentina from 1989 to 1999. He is currently an Argentine National Senator for La Rioja Province.-Early life:...
, after the latter's re-election in 1995. Shortly before elections in elections in 1999, he reportedly declared that we'll choose the next president this time. He nevertheless maintained cordial relations with the runner-up of that campaign, Justicialist Party
Justicialist Party
The Justicialist Party , or PJ, is a Peronist political party in Argentina, and the largest component of the Peronist movement.The party was led by Néstor Kirchner, President of Argentina from 2003 to 2007, until his death on October 27, 2010. The current Argentine president, Cristina Fernández de...
Governor Eduardo Duhalde
Eduardo Duhalde
-External links:...
, who was appointed President by the Argentine Congress following the December 2001 riots in Argentina that led to his predecessor's (Fernando De la Rua
Fernando de la Rúa
Fernando de la Rúa is an Argentine politician. He was president of the country from December 10, 1999 to December 21, 2001 for the Alliance for Work, Justice and Education ....
) resignation. Magnetto was able to parlay this understanding into Duhalde's support for a "Law of Preservation of Cultural Patrimony," which limited foreign ownership of local media to 30%, and thus protected the Clarín Group's core businesses. The group had suffered steep losses during the 1999-2002 crisis, and the bill (passed in July 2003, and dubbed the "Clarín Law" by detractors), helped solidify its finances.
The company recovered alongside the Argentine economy in subsequent years, and by 2006, had acquired Cablevisión, its Multicanal cable unit's leading competitor. Magnetto, however, was beset by worsening health problems, chief among them a dignosis of esophageal cancer
Esophageal cancer
Esophageal cancer is malignancy of the esophagus. There are various subtypes, primarily squamous cell cancer and adenocarcinoma . Squamous cell cancer arises from the cells that line the upper part of the esophagus...
in early 2007, which for a time led to speculation as to his continuity as CEO of the Clarín group, as well as to a possible dispute over his 30% share in the company. Magnetto reacted positively to treatment, and underwent subsequent speech therapy.
He was on hand for the October 22, 2007, Clarín IPO in the Buenos Aires Stock Exchange
Buenos Aires Stock Exchange
The Buenos Aires Stock Exchange is the organization responsible for the operation of Argentina's primary stock exchange located at Buenos Aires CBD. Founded in 1854, is the successor of the Banco Mercantil, created in 1822 by Bernardino Rivadavia.Citing BCBA's self definition: "It is a...
, and continued to preside over the group. Former President Néstor Kirchner
Néstor Kirchner
Néstor Carlos Kirchner was an Argentine politician who served as the 54th President of Argentina from 25 May 2003 until 10 December 2007. Previously, he was Governor of Santa Cruz Province since 10 December 1991. He briefly served as Secretary General of the Union of South American Nations ...
alleged that, during the 2008 Argentine government conflict with the agricultural sector
2008 Argentine government conflict with the agricultural sector
The 2008 Argentine government conflict with the agricultural sector started in March 2008, which then extended into a prolonged period of turbulent politics...
, Magnetto offered a supportive spin on the administration's case for higher export tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
s, in exchange for an amenable treatment of the media group's acquisition of a significant stake in Telecom Argentina
Telecom Argentina
Telecom Argentina is the major local telephone company for the northern part of Argentina, including the whole of the city of Buenos Aires...
(a potential anti-trust law violation); the hitherto cordial relations between Kirchnerism
Kirchnerism
Kirchnerism is a term used to refer to the political philosophy and supporters of Néstor Kirchner, president of Argentina from 2003 to 2007, and of his wife Cristina Fernández de Kirchner, President from 2007...
and the Clarín Group soured during the conflict. Subsequently, Magnetto was one of 200 individuals investigated by the government for money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
, mainly related to tax evasion
Tax evasion
Tax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
.