MCI says Brazil's Embratel to list on NYSE soon
Reuters, Wednesday, November 04, 1998 at 23:15
SAO PAULO, Nov 4 (Reuters) - Brazil's Embratel (SAO:EBTP4),
a long-distance phone carrier will be listed on the New York
Stock Exchange (NYSE) together with 11 other former Telebras
companies already cleared to trade on the NYSE, Embratel's
parent said Wednesday.
The parent, U.S-based MCI WorldCom Inc.(NASDAQ:WCOM), said
Embratel would debut on the NYSE before its application with
the U.S. Securities and Exchange Commission (SEC) was approved.
MCI Communications Corp (NASDAQ:MCIC) bought Embratel in the
Telebras privatization auction on July 29 before merging with
WorldCom Inc.
"Embratel will be allowed to trade on the NYSE before its
filing with the SEC takes effect so that the 12 units may start
trading at the same time," a MCI WorldCom spokesman told
Reuters.
The SEC on Tuesday approved 11 of the 12 telephone units
created from Telebras. Embratel was the only company left out.
MCI said Embratel was the surviving entity of former
Telebras for U.S. accounting purposes and because of this
accounting treatment, the company's filing process was more
complex than that of the other Telebras companies.
Embratel's filing was expected to be completed in the
coming months, but the firm was due debut on the NYSE before
that, the MCI spokesman said.
The MCI comments also clarifies the company's position on
whether Embratel needed additional filing with the SEC.
An Embratel spokeswoman in Brazil said earlier on Wednesday
that the company did not need SEC approval to trade as it would
inherit the registration number of Telebras American Depositary
Receipts (NYSE:TBR), which still trade on the NYSE.
The MCI spokesman said those comments were incorrect.
Shares of the 12 former Telebras units, including Embratel,
have been trading in Brazil since Sept. 21.
The 11 other companies spun off Telebras include eight
cellular companies: Telesp Celular (SAO:TSPP4), Tele Sudeste
Celular (SAO:TSEP4), Tele Sul Celular (SAO:TCSL4), Telemig
Celular (SAO:TMCP4), Tele Leste Celular (SAO:TLCP4), Tele Centro
Oeste Celular (SAO:TCOC4), Tele Nordeste Celular (SAO:TNEP4) and
Tele Norte Celular (SAO:TNCP4).
The spin-offs also include three fixed-line companies,
Telesp Participacoes (SAO:TSPP4), Tele Centro Sul Participacoes
(SAO:TCSP4), and Tele Norte Leste Participacoes (SAO:TNLP4).
noriko.yamaguchi@reuters.com))
Copyright 1998, Reuters News Service |
