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

To: Mayer Tchelebon who wrote (1255)	3/19/1998 10:08:00 PM
From: Tony van Werkhooven	Respond to of 22640

Following the train of thought of the last post, it would seem reasonable to discount the value in the privatization sale because it would represent a "controlling" block (20% discount would seem reasonable). On the other hand, the privatization proceeds probably do not reflect the growth potential and expense reductions and the consequent earning accelration over the next five years say. It seems that we end up in the 250-300 range as potential value. This would come down with increase in the currency risk.