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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: JohnG who wrote (21933)	4/28/2002 9:03:31 PM
From: kech	Respond to of 196612

That is great news John. It was already known that there was deal right but not what the price was. This should be good for Leap, PCS and QCOM. It says the debt was $1.2 billion and most of it owned by Q. I wonder if that also includes paying back the arrears on the debt payments that were not paid? All this should help out QSI quit a bit in terms of liquidity and will close the gap between GAAP and Pro Forma earnings for those concerned about QSI. Just got some more detail from the WSJ article: TELECOMMUNICATIONS MOVILES IN MEXICO Telefonica Moviles to Acquire Stake In Mexican Wireless Firm Pegaso By ROBERT FRANK Staff Reporter of THE WALL STREET JOURNAL Spanish mobile-phone giant Telefonica Moviles SA has agreed to purchase a 65% stake in Mexican wireless operator Pegaso for between $80 million to $90 million, plus the assumption of about $1.27 billion in debt and other considerations. The deal, which was expected, could be announced as early as Monday morning and gives Telefonica control of Mexico's second-largest wireless operator. Telefonica is buying the stakes from Sprint PCS, Leap Wireless, Citicorp Equity Capital, AIG-GE Capital Latin America Infrastructure Fund and the Nissho Iwai Corporation. Most of the debt is being acquired from Qualcomm Inc., which is Pegaso's largest creditor. Under terms, Telefonica will acquire a 65% in Pegaso for a total of $1.36 billion, including between $80 million to $90 million in equity, and the assumption of about $1.27 in debts and other considerations including equity. The remaining 35% of the company will continue to be held by the Grupo Burillo. With the acquisition, Telefonica aims to strengthen its presence in Mexico and challenge the country's dominant operator, American Movil. When Pegaso is with Telefonica Moviles Mexico, the combined company will have about 2.1 million subscribers, compared to America Movil's more than 17 million subscribers. The deal caps Telefonica's aggressive acquisitions in the late 1990s, which included wireless companies throughout Europe and Latin America. Telefonica has acquired stakes in operators in Chile, Brazil, Argentina, Peru, Central America and Venezuela, investing nearly $25 billion to become the largest telecom operator in the region. Greenhill & Co. acted as financial adviser to Pegaso, while Lazard LLC advised Telefonica and Morgan Stanley advised Qualcomm. Write to Robert Frank at robert.frank@wsj.com Updated April 29, 2002