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

To: wl9839 who wrote (21250)	8/7/2000 1:07:46 PM
From: Art Baeckel	Read Replies (3) \| Respond to of 22640

Brazil Petrobras to close $4.4 bln share offer Monday Reuters Company News - August 07, 2000 12:06 Copyright 2000 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Jump to first matched term By Shasta Darlington RIO DE JANEIRO, Aug 7 (Reuters) - Brazil's state oil giant Petrobras prepared on Monday to close its offer of 8 billion reais ($4.4 billion) of stock, the country's biggest share offer ever. "The global offer ends today and we should announce the price on Tuesday," Francisco Gros, the president of Brazil's National Development Bank (BNDES), which is overseeing the sale, told Reuters. Petrobras hopes to sell 28.5 percent of ordinary shares of voting stock - equivalent to 16.6 percent of total capital - to individual and institutional investors in Brazil and the U.S. The government will maintain at least 32.4 percent of total capital, or 55.6 percent of voting shares. As part of the offer, Petrobras will launch level III American Depositary Receipts on the New York Stock Exchange on Wednesday. Analysts, however, said the oil giant is not likely to sell the entire lot despite looking for creative ways to offload the shares and even after extending the sale by five days. "I think it would be very difficult to sell everything," said Marcio Britto, an analyst at Banco Icatu in Sao Paulo. "It's a huge offer for a single Brazilian company." Petrobras had initially said it would accept cash offers until Aug. 2 and had set the deadline for workers who want to invest their government-managed salary guarantee funds (FGTS) for July 31. According to the new schedule, Petrobras will announce the price on Tuesday after compiling offers and will deliver the shares on Aug. 17. The company has set a ceiling price of 58 reais per share for FGTS funds and retail investors. Coordinating banks said they could accept offers from institutional investors even on Tuesday before the price comes out. This is the first time workers will be able to use their FGTS funds to buy stocks. All Brazilian workers make mandatory contributions to the FGTS, but until now, they have only been able to draw on them when they retire, are fired or buy a house. "Petrobras looked for a variety of different ways to sell its shares in order to fuel demand," said an analyst who asked not to be named. But as of Thursday, the company had only sold a little over 1 billion reais ($555,000) in shares to workers using FGTS funds. Analysts said that Petrobras will probably only sell about 1.5 billion reais that way. Analysts said that Petrobras is likely to sell a total of only a bit over half of the 8 billion reais on offer. They also said the price should come in below the share's current market price of 46.19 reais. "The retail offer was very poorly done and poorly advertised," said a banker at one of the banks that coordinated the sale. ($1=1.8 reais)

To: wl9839 who wrote (21250)	8/7/2000 3:43:54 PM
From: Steve Fancy	Respond to of 22640

C'mon TNE! Thanks Warren. TNE sure has had a hard time getting through the complexities of aquiring a Fed run phone company, but an absolute no-brainer IMO. With the new installed lines, they've got to be darn close to the number one phone company in LA...at least in terms of lines. My bet is they have some good news in store as both they and BNDES have been waiting until the house was in order to sell stakes and TNE has already announced they hope to sell a stake late this year. Thanks for the post and good luck all faithful TNE holders. sf