Cisneros also seems inclined to prop up its troubled investments, in this case AOL Latin America:
cisneros.com
Friday, February 23, 2001
AOL Latin America Hldrs Group In Talks To
Buy More Shares
By Kevin Guerrero
Dow Jones News Service
WASHINGTON - A group of America Online Latin America Inc.
(AOLA) shareholders are in negotiations with the Spanish- and
Portugese-language Internet service provider to acquire additional
shares of the company's stock.
According to an amended Schedule 13D filed with the Securities and
Exchange Commission late Friday, the group includes Brazil's
fourth-largest retail bank, Banco Itau SA (E.BIT); Itau Bank Ltd.;
Aspen Investments LLC; Atlantis Investments LLC and certain other
unidentified shareholders.
The group entered a letter agreement Feb. 13, according to the SEC
filing. Banco Itau and Itau Bank Ltd. are seeking to buy shares with an
aggregate value of about $20 million.
Banco Itau and Itau Bank said they would buy any additional shares
purchased for investment purposes. They also cautioned that the
agreement could fall apart; the letter agreement automatically terminates
if the two sides don't execute definitive pacts by April 15.
Additional shares purchases would be subject to mutual agreement on
terms and conditions of such purchases and a definitive agreement,
approval of America Online Latin America's board, a fairness opinion
from an investment bank hired by the Ft. Lauderdale, Fla., company's
board, and any required regulatory approvals.
Banco Itau has a 36.7% stake in America Online Latin America,
according to the SEC filing.
As previously reported, America Online Latin America's principal
shareholders - AOL Time Warner Inc. (AOL) unit America Online, the
Cisneros Group (E.CIS) and Banco Itau - have agreed to provide
$150 million in added capital on terms yet to be established by the
parties. Of that amount, Banco Itau agreed to invest about $20 million
in Class A common stock.
AOL Latin America and Banco Itau have a co-branded, customized
America Online Brazil service, which recently launched and is being
marketed to Itau's 7 million banking customers. |
