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January 14, 2008 |
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TELEMAR NORTE: Intensifies Talks To Acquire Brasil Telecom Telemar Norte Leste told Business News Americas that it had stepped up talks to acquire Brazilian fixed line operator Brasil Telecom. Telemar Norte said in a statement that it was offering some BRL4.8 billion for holding company Solpart, which controls Brasil Telecom. News daily Valor Economico reports that Solpart is controlled by: -- Citigroup, -- Opportunity Asset Management, and -- Brazilian pension funds. BNamericas notes that Telemar Norte is controlled by: -- La Fonte, -- Andrade Gutierrez, -- GP Investimentos, -- pension funds, and -- Brazilian development bank BNDES. According to Telemar Norte's statement, the prices being discussed during the negotiations are "indicative." GP, Citi and Banco do Brasil's pension fund Previ agreed with Telemar Norte to leave the company that would result from the acquisition, news daily Folha de S Paulo says. The new firm will be controlled by La Fonte, Andrade Gutierrez, and other partners. BNamericas relates that once the sale is approved, the resulting firm would be the largest mobile and fixed line operator owned by exclusively national capital in Brazil. It would compete with Spain's Telefonica and Mexico's Telmex. Signals Telecom Consulting senior analyst Diego Bubillo commented to BNamericas, "The only way Oi [Telemar Norte] and BrT [Brasil Telecom] can compete with those two groups is by merging." Yankee Group analyst J£lio Puschel told BNamericas, "The new operator could be an interesting asset for an international group to enter the Brazilian telecommunications market. Nowadays it is very hard for a group to invest in that market given the current situation. An operator this large and with such solid infrastructure could change that scenario." Brazil's antitrust laws prevent a merger between any of the fixed line concession holders Telemar Norte, Brasil Telecom, Telesp or Embratel due to conflict with concession licenses, published reports say. However, it wouldn't hinder the Telemar Norte-Brasil Telecom merger and the necessary changes to legislation could be made, Valor Economico states, citing Brazilian communications minister Helio Costa. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br -- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long- distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. About Telemar Norte Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br -- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. As reported on April 27, 2007, Standard & Poor's placed on CreditWatch with negative implications the 'BB+' corporate credit rating on Tele Norte Leste Participacoes S.A. The creditwatch resulted from TmarPart's decision to buy out its holding company's preferred shares. |
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