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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: wl9839 who wrote (21141)	7/20/2000 8:17:12 AM
From: wl9839	Read Replies (1) \| Respond to of 22640

Portugal Telecom to Swap Telesp Stakes With Telefonica Portugal Telecom to Swap Telesp Stakes With Telefonica Madrid, July 20 (Bloomberg) -- Portugal Telecom SA said it will swap its stake in Brazil's largest traditional phone company for Telefonica SA's stake in that country's biggest wireless company as Portugal Telecom looks to focus its Brazil business on the cellular phone market. Portugal's largest phone company will receive about $60 million from Telefonica in addition to the Spanish phone company's stake in Telesp Celular Participacoes, the wireless phone company for the city of Sao Paulo. The swap will allow PT to raise its stake to 35.5 percent from 29.9 percent. The swap is ``in line with PT's strategy of reinforcing its position in Sao Paulo's cellular market,'' PT said in a note. PT and Telefonica, the biggest phone company in the Spanish- and Portuguese-speaking world, formed an alliance in 1998 to bid for telephone assets in Brazil and beyond. The two won control of Telesp, the biggest of the phone companies sold at the time when the Brazilian government broke up Telebras, the state-owned monopoly phone company. As part of the agreement, PT will turn over to Telefonica its 23 percent of a holding that controls its stake in Telesp's traditional phone unit. PT also announced that Telesp Celular will buy Ceterp Celular, a wireless phone company in the northwest part of the state of Sao Paulo. Ceterp has 61,000 customers in a region of 500,000 people. PT did not disclose the price of the purchase. -------------------------------------------------------------------------------- © Copyright 2000, Bloomberg L.P. All Rights Reserved.