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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 180.72

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Nov 3 9:30 AM EST

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To: Ramsey Su who started this subject	3/8/2002 6:34:23 AM
From: kech	Read Replies (1) of 196422

Telefonica values Mexico's Pegaso at $1.36 bln (UPDATE: Adds valuation and price paid) MADRID, March 8 (Reuters) - Spanish cellphone operator Telefonica Moviles said on Friday it would pay $70.5 million for a stake in Mexico's Pegaso, and a source said it was also assuming debt for at least 10 times that amount. ADVERTISEMENT Moviles is buying 65 percent in the mobile company from Sprint (NYSE:PCS - news), Leap Wireless (NasdaqNM:LWIN - news) and financial investors. The Spanish company said it had agreed on a value of $1.36 billion for the whole of Pegaso. Official spokesmen were unable to explain the difference between the cash price and the valuation. But a source close to the deal said most of the balance was made up of debt, and Telefonica would assume 65 percent of that, implying it would take on debt and other commitments worth a further $813.5 million, for a total price of $884 million. Telefonica said Mexico's Burillo group, led by investor Alejandro Burillo Azcarraga, would continue to own the other 35 percent in the operator. Both partners would carry out a capital increase in Pegaso in the future to strengthen the company. The purchase, in addition to four smaller operators Telefonica already owns in northern Mexico, would make the Spanish company the second-largest cellphone operator in Mexico with some two million customers. Telcel, a unit of America Movil (NYSE:AMX - news), dominates the market with around 17 million of the country's 21 million mobile phone users. Telefonica said on Thursday it planned to merge Pegaso into its mobile arm Telefonica Moviles Mexico, which will be 90 or 92 percent owned by Telefonica and eight to 10 percent by Burillo. Final shareholdings will depend on how much each pays in the planned capital expansion. Moviles' parent company Telefonica said Mexico and Brazil were its priorities for expansion in Latin America. biz.yahoo.com

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