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

To: Steve Fancy who wrote (543)	12/11/1997 1:18:00 PM
From: Steve Fancy	Respond to of 22640

Old news but oughta prevent TBR from falling much further? I believe the two firms had been selected to handle this buyback. I wonder if they just start buying if the stock hits 91.7? In any case this would suggest to me that it's unlikely we see it drop below 90 at this point? ======================================== Thursday November 27, 2:42 pm Eastern Time Telebras buyback depends on share price BRASILIA, Nov 27 (Reuters) - A proposed 100 million real ($91.7 million) share buyback by Brazil's Telebras will take place only if the company's stock price falls below 100 reais, the company's president said Thursday. The buyback could be of either Telebras common or preferred, said Fernando Xavier Ferreira at a news conference. Telebras' preferred (TEL_p.SA), the bellwether issue of the Sao Paulo Stock Exchange, was trading at 117.60 reais in late dealings Thursday, while Telebras common (TEL.SA) changed hands at 105.99 reais. Ferreira also told reporters that the state-owned telecommuncations holding would not use a credit line from the National Development Bank (BNDES) should it buy back the shares as reported in the national press. ''If Telebras does this deal, it will do it with its own cash,'' Ferreira said. The BNDES would serve as Telebras' broker in the purchase, he added. Ferreira said the idea of buying back shares tallied with plans by other Brazilian companies that have sought to take advantage of recent plunges in stock prices. ''It would serve as a sign of our confidence that the company's shares are worth more (than 100 reais),'' he said. sf