Mexican Senate Queries Iusacell Ownership Structure
siliconinvestor.com
MEXICO CITY, Jul 2, 2001 (Reforma/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- Mexico's opposition-controlled Congress has launched an investigation into the current ownership structure of mobile telephone carrier Iusacell (BMV:CEL; NYSE: CEL chart, msgs), according to a report in Mexico City daily Reforma. While mobile carriers are exempt from current restrictions on foreign direct investment in the country's telecommunications industry, controversy surrounding U.S.-based Citigroup's (NYSE: C chart, msgs) plans to acquire Grupo Financiero Banamex Accival's (BMV:BANACCI) 51-percent stake in long-distance carrier Avantel have stirred up broader political concerns about increasing foreign ownership in the telecom industry, Reforma business columnist Dario Celis Estrada. The Mexican Senate has requested that Iusacell provide it with details of changes in ownership structure that occurred when U.K.-based Vodafone Group (NYSE: VOD chart, msgs) earlier this year acquired a 34.5-percent stake in the company. U.S.-based Verizon Communications (NYSE: VZ chart, msgs) owns 39 percent of Iusacell.
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Mexico's Iusacell Denies Senate Investigation Report
siliconinvestor.com
MEXICO CITY, Jul 3, 2001 (Reforma/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- Peter Burrowes, CEO of Mexican mobile telephone carrier Iusacell (BMV:CEL; NYSE: CEL chart, msgs), on Monday denied reports that Mexico's opposition-controlled Congress had initiated an investigation into the legality of changes in the company's ownership structure following the sales of a 34.5-percent stake in Iusacell to U.K.-based Vodafone Group (NYSE: VOD chart, msgs) earlier this year, according to a report in Mexico City daily Reforma. Vodafone paid more than 900 million dollars in cash to acquire company founder Carlos Peralta's remaining stake in Iusacell. U.S-based Verizon Communications (NYSE: VZ chart, msgs) owns a 39-percent stake in Iusacell. Burrowes on Monday said the company had not received any request from any Mexican government body for information regarding the transaction with Vodafone, Reforma business columnist Dario Celis Estrada reported. Burrowes also said there currently was no official investigation with respect to the "neutral trust" that holds Iusacell's controlling stakes.
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Iusacell Chairman Denies FDI-Restriction Violation Allegations
siliconinvestor.com
MEXICO CITY, Jul 4, 2001 (El Universal/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- Peter Burrowes, chairman and CEO of Mexican No. 2 mobile telephone carrier Iusacell (BMV:CEL; NYSE: CEL chart, msgs), on Tuesday denied suggestions the existing ownership structure of the company's long-distance subsidiary, Iusatel, had been designed to simulate compliance with legal restrictions on foreign direct investment (FDI) in the country's telecommunications industry, Mexico City daily El Universal reported. "With respect, we don't have anything to explain. We're properly registered with the National Foreign Investment Commission (CNIE). We're a serious company, well-respected, and we don't engage in tricks or anything of the kind," Burrowes said. Alejandro Gutierrez, a member of Mexico's opposition-controlled Senate, has alleged that Iusatel's ownership structure violates a ban on Mexican long-distance companies from being majority owned by foreign companies. U.S.-based Verizon (NYSE: VZ chart, msgs) owns a 39-percent stake in Iusacell, and U.K giant Vodafone Group has a 34.5-percent stake in the company. |
