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Technology Stocks : Nuevo Grupo Iusacell (CEL) -- Ignore unavailable to you. Want to Upgrade?

To: Rob Preuss who wrote (178)	7/18/2003 5:46:07 PM
From: Rob Preuss	Respond to of 206

Second buyout offer this week for Mexico's Iusacell Friday July 18, 4:26 pm ET MEXICO CITY, July 18 (Reuters) - Mexican cell phone company Iusacell received its second buyout offer in a week on Friday, casting doubts over a Mexican tycoon's seemingly done deal to buy the country's No. 3 wireless player. Iusacell (Mexico:CELV.MX - News; NYSE:CEL - News) said in a statement Delaware-based Fintech Advisory Inc. offered $20 million for 100 percent of the heavily-indebted company. Fintech could not be reached for immediate comment on the offer and Iusacell said in its statement it would reserve comment until a later date. "The company will make further public announcements in connection with the tender offers at the appropriate time and as required by Mexican and United States securities laws," Iusacell said in a statement. Iusacell also said UBS Securities LLC on Thursday withdrew an earlier offer to negotiate a deal with Iusacell's majority shareholders Verizon Communications Inc. (NYSE:VZ - News) and Vodafone Group Plc (London:VOD.L - News). The new offers raise doubts about the security of a June 13 bid from media mogul Ricardo Salinas to buy Iusacell for $10 million, plus $811 million of debt that is partly in default. Verizon, the largest U.S. local telephone company, and British-based mobile phone leader Vodafone Group, which have a combined 73.9 percent stake in Iusacell, both originally agreed to sell their stakes in Iusacell. Movil Access, a paging firm owned by Salinas, said it would buy the two stakes -- Verizon has 39.4 percent stake and Vodafone has 34.5 percent stake -- and all other outstanding Iusacell shares for a total of $10 million. Takeover bids in Mexico are required by law to include an offer to buy all of a company's outstanding shares. Iusacell is in technical default on a $266 million syndicated bank loan and has $350 million in bonds due 2006 and $150 million due next year. It missed a $25 million interest payment on the 2006 bonds in June, but analysts say its $500 million in annual sales give it potential. Since Salinas' deal with Verizon and Vodafone was announced, Iusacell's share price has been volatile, continuously trading above the equivalent offer price of 5.7 centavos per share. The wireless telecom's shares rose 2.5 percent on Friday at 0.41 peso, while its New York-traded American Depositary Receipt (ADR) rose 2.37 percent to $3.89.