To: SI Bob who wrote (17911 ) 5/28/2003 11:08:19 PM From: Jeffrey S. Mitchell Respond to of 32871 Might Raging Bull now be up for sale? At least you now know who to call... ===== Telefonica Offers EU1.73 Bln to Buy Out Terra Unit (Update1) May 28 (Bloomberg) -- Telefonica SA, Spain's largest telephone company, offered as much as 1.73 billion euros ($2 billion) in cash to buy out its unprofitable Terra Networks SA Internet unit, which owns the Lycos group of Web sites. Telefonica offered 5.25 euros for each Terra share it doesn't own, the company in a statement to regulators. That's 10 percent more than Terra's share price before being suspended today. The offer is contingent on getting 75 percent of the company. Investors had bet on Telefonica taking full control of Terra because the two companies compete in the Spanish Internet market. In addition, Terra's revenue has been shrinking because of a slump in advertising. By acquiring Terra the former monopoly gains full control of Terra's 1.7 billion euros of cash. ``It's reasonable for Telefonica, nasty for Terra shareholders,'' said Sergi Martin, who helps manage the equivalent of $1.5 billion at Caixa Penedes. Martin has sold all his Terra shares. ``Terra had long ago lost any sense as an independent unit.'' Telefonica shares rose as much as 1.8 percent to 9.54 euros, and traded at 9.48 euros as of 12:41 p.m. in Madrid. Before the suspension Terra shares rose 25 cents, or 5.5 percent, to 4.77 euros. The stock reached a high of 157.65 euros in February 2000. Telefonica currently owns about 38 percent of Terra. The phone operator said that acquiring Terra will boost earnings before interest, tax, depreciation and amortization by 269 million euros through 2006. Last Updated: May 28, 2003 06:45 EDT quote.bloomberg.com