Further Clarification from Reuters
Telefonica, Iberdrola to bid on Brazil
mobile shrs
SAO PAULO, May 17 (Reuters) - Spain's Telefonica and
Iberdrola plan a bid of 550 million reais ($330 million) for all
outstanding shares of four Brazilian cellular companies in which the
firms already have controlling stakes, the companies announced on
Monday.
In a joint statement, the companies said Telefonica alone would bid
on all outstanding ordinary and preferred shares of Brazilian mobile
firms Telerj Celular and Telest Celular.
It then would then join partner Iberdrola to bid on Telebahia Celular and Telergipe Celular.
The public tender offer will carry a 50 percent premium above the closing stock price on May 14, the
statement said.
Telecom giant Telefonica last year bought a controlling stake in Brazil's Tele Sudeste Celular holding,
which owns Telerj and Telest Celular. It joined Spanish utility firm Iberdrola in a group which won Tele
Leste Celular holding, which owns Telebahia and Telergipe.
Telefonica, which announced on Monday a 30 percent rise in its first-quarter profit to 257.9 million
euros ($275.2 million) in part due to increased mobile business, said the public tender offer
demonstrated its faith in the Brazil's economic recovery.
''This shows our vote of confidence in the Brazilian economy,'' said Fernando Xavier Ferreira,
president of Telefonica in Brazil.
The companies said they filed pertinent paperwork with Brazil's Securities and Exchange Commission
(CVM) on Monday.
By law, once the CVM approves the details of the offer, it must be carried out within 15 days, it said. |
