Brazil CRT phone firm sale contract signed
Reuters Company News - July 31, 2000 19:40
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BRASILIA, July 31 (Reuters) - Officials from Brazil's Brasil Telecom and a
unit of Spain's Telefonica on Monday signed a deal that allows Brasil Telecom
to buy an 85.2 percent stake in regional local operator CRT for $800 million.
The deal between Brasil Telecom and TBS, the holding company that
represents Telefonica, was signed at the headquarters of Brazil's Anatel
telecommunications market regulator, which is expected to suspend its
intervention in CRT, officials said.
The deal will be considered done when Anatel gives up control over the
company, which, according to Anatel head Renato Guerreiro, may occur this
week.
The sale of Cia Riograndense de Telecomunicacoes (CRT) had been plagued
by long-running disputes about the sale price, Anatel's intervention and a court
challenge by a state government, which was overturned last week.
Brasil Telecom and Telefonica were already partners in the company, whose
concession covers 9.5 million in the state. Anatel seized control of CRT last
month after Telefonica and Brasil Telecom -- owned by Telecom Italia and
Brazilian financial group Opportunity -- failed to agree on a sale price.
Telefonica was ordered by Anatel to sell its stake in CRT in 1998 after it
bought another phone concession, violating Anatel's rules on ownership. |
