ADR REPORT- Telebras (NYSE:TBR) spin-offs start trade
Reuters, Monday, November 16, 1998 at 10:42
NEW YORK, Nov 16 (Reuters) - Spin-offs from Brazil's
Telebras (SAO:TELB4) began trade on the New York Stock Exchange
Monday, marking the break-up of the giant telephone company.
Brazilian Communications Minister Luiz Carlos Mendonca de
Barros sounded the opening bell for the session in which
Telebras, a bellwether emerging market American Depositary
Receipt (ADR), started trade as 12 separate companies.
Telesp Participacoes (NYSE:TSP_.W), which has fixed-line
services in Brazil's industrial powerhouse of Sao Paulo state,
was up at 28-1/16 on a when-issued basis from an opening price
of 27-3/4.
Telesp is among analysts' favorites in the new ADRs.
Among other Telebras spin-offs, Tele Norte Leste (NYSE:TNE_.W)
slipped to 13-3/8 on a when-issued basis from an opening price
of 14. Long-distance carrier Embratel (NYSE:EMT_.W) was unchanged
from its opening price of 16-1/2.
When-issued trade is buying and selling before the stock is
actually available. The ADRs are likely to be available within
a few days.
Telebras' spin-offs were privatized by Brazil's reformist
government in July for $19 billion. The sale attracted many of
the world's biggest telecommunications companies, drawn by an
underserved market of 160 million people.
Mendonca de Barros himself is facing allegations in the
Brazilian media that he favored certain investors in the
Telebras privatization.
The minister has denied the allegations, which surfaced in
the Veja newsmagazine over the weekend.
The Bank of New York index of 439 leading ADRs <.BKADR> was
up 2.11 percent.
Copyright 1998, Reuters News Service |
