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

To: Steve Fancy who wrote (1435)	4/3/1998 3:00:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

*****!! Telebras denies reports it will disband in 30 days Reuters, Friday, April 03, 1998 at 14:58 SAO PAULO, April 3 (Reuters) - Brazilian telecommunications holding company Telebras (SAO:TEL_.P)(NYSE:TBR) denied on Friday reports it would be liquidated within 30 days. "It is groundless, the information that Telebras would be liquidated within 30 days." it said in a statement sent to the Sao Paulo Stock Exchange (Bovespa). It also said the sale model for Telebras and its subsidiaries would be explained to the market as soon as it is defined by Brazilian authorities. The stock market has been shaken since Thursday by rumors about the fate of Telebras shares in light of its split prior to privatization. The federal government plans to split Telebras into 12 pieces -- eight wireless, three local landline and one long-distance firm -- before selloff in June or July. The market also has been hit by rumors of lowering of Telebras' weighting on the Sao Paulo bolsa's Bovespa index (INDEX:$BVSP.X), which comprises the 51 most active shares, ahead of the split. The Sao Paulo Stock Exchange said no change has been made on the index's portfolio. Telebras preferred has a 40.34 percent weighting, while its common share has a 5.2 percent weighting.

To: Steve Fancy who wrote (1435)	4/3/1998 3:01:00 PM
From: Steve Fancy	Respond to of 22640

*****!! Brazil's Telebras Units Will Trade On Their Own ADRs Dow Jones Online News, Friday, April 03, 1998 at 14:54 NEW YORK -(DOW JONES)- The 12 units of Brazil's telecommunications holding concern Telecomunicacoes Brasileiras SA, or Telebras, will each trade their own American depositary receipts, or ADRs, the director of privatization for Brazil's National Development Bank said Friday. The official, Jose Luis Pio Borges, told Dow Jones Newswires that BNDES and privatization advisors Salomon Smith Barney are confident that all 12 units will qualify for a listing on the New York Stock Exchange under the NYSE's most stringent requirements, also known as level 3. "Some are going to be very liquid, and others may not be so liquid," Borges said. "But on average, liquidity is going to increase," he said in addressing investor concerns over the future trading structure of the current Telebras ADR (TBR). Asked about the timetable for Telebras privatization, Pio Borges reiterated the government's intention to privatize Telebras by July. "We're struggling to have it done by June or July," he said. If the privatization goes through as planned, it will be Latin American's largest privatization to date. The company will be split into three regional fixed wireline companies, eight cellular and one long-distance provider, and then will be sold off. The government's 21% stake in Telebras is estimated to be worth between 20 billion reals and 30 billion reals ($17.76 billion and $26.64 billion). - Mararita Palatnik; (201) 938-2226 Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.