+DJ In-House Pension Fund To Propose Buy Of Brazil Embratel
12/08/2003
Dow Jones News Services
(Copyright © 2003 Dow Jones & Company, Inc.)
(MORE) Dow Jones Newswires
12-08-03 0758ET
*DJ Brazil Embratel Pension Fund Telos To Present Offer Mon
(MORE) Dow Jones Newswires
12-08-03 0759ET
=DJ Brazil Embratel/Pension Fund-2: Offer Price Not Revealed
By Tom Vogel
Of DOW JONES NEWSWIRES
SAO PAULO (Dow Jones)-- A pension fund of Embratel Participacoes SA (EMT) says it is interested in buying the firm, which U.S.telecommunications giant MCI put up for sale on Nov. 13.
The Embratel employees' pension fund, known as Telos, will release an official announcement of its interest this afternoon, according to spokespersons for Embratel and Telos. The announcement will not mention the amount Telos would offer for the company, Brazil's long-distance phone service company, said a spokeswoman for Telos.
Local news reports that Telos would announce its purchase of Embratel later Monday sent the company's ordinary shares soaring as much as 4.9% in early trading. However denials that a sale was imminent from spokespersons for both Telos and Embratel sent the stock plunging as much as 9.6% to 14.80 reals ($1=BRL2.94) by 13:30 GMT.
MCI wants to sell its controlling stake in Embratel as part of a massive reorganization plan, approved by a U.S. bankruptcy court in October. MCI bought a 51.8% voting stake in Embratel for $2.25 billion in 1998.
Before news of the interest of Telos in Embratel, Mexico's biggest fixed-line phone-service provider, Telefonos de Mexico SA (TMX), or Telmex, had been considered the most likely candidate to purchase Embratel. Telmex has not yet publicly expressed an interest in purchasing the Brazilian phone company.
(MORE) Dow Jones Newswires
12-08-03 0902ET
amtddj.inlumen.com
ART |
