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

To: DMaA who wrote (1645)	4/14/1998 3:46:00 PM
From: Steve Fancy	Respond to of 22640

It'll be interesting to see what happens between 4 and 5 on the Pacific and other exchanges tonight. TBR tends to trade till 4:30 - 5:00 in light trade. The spread seems to open up considerably after 4:00. Volume picking up today. Interestingly, of the 12608 OI on APR 125C, only 1765 appear to have cashed out so far today. Can't imagine any reason to be buying these when you can buy the 130's. sf

To: DMaA who wrote (1645)	4/14/1998 3:46:00 PM
From: DMaA	Read Replies (1) \| Respond to of 22640

Dow Jones story on Telet consortium purchase: Dow Jones Newswires -- April 14, 1998 Brazil's Telet Buys Area 6 B-Band License For 334M Reals BRASILIA (Dow Jones)--The Telet consortium, led by Canadian companies Bell Canada (T.BI) and Telesystem International Wireless (T.TIW), on Tuesday won the B-Band cellular telephone service license for Rio Grande do Sul, Brazil's southernmost state. Telet was the only consortium to have its bids opened, as its original competitors - Vicunha and Global Telecom - automatically dropped out for already having won the licenses for areas 4 and 5 earlier this month. Telet's sealed bid was 334.5 million reals (BRL) ($1=BRL1.13), or 1.4% more than the BRL330 million minimum asking price for the license. Bell Canada and TWI each own 20% stakes in the consortium, while Brazilian investors, including large pension funds, and International Equity Investments Inc. of unknown nationality hold the remaining capital. The partners in the Telet consortium are the same that make up the Americel consortium, which won the Area 7 license for Central Western Brazil in July last year. Telet said it will invest BRL700 million over the next three years, including the payment for the license. Rio Grande do Sul has a population of almost 10 million and is one of Brazil's economically and socially best developed states. It also holds a geographically strategic position within Mercosur, the southern cone common market consisting of Brazil, Argentina, Uruguay and Paraguay and including Chile and Bolivia as associate members. The granting of the Area 6 license rounds off the series of B-Band auctions started in July 1997, but which was interrupted for almost seven months following a string of court actions and legal disputes. The only exception is Area 8, which covers the extensive and thinly populated far North - most of the Amazon region plus Maranhao state. Two auction attempts failed for this area last year with not a single bidder showing interest. The National Telecommunications Agency (Anatel) is currently reformulating the Area 8 license conditions and will review the minimum asking price of BRL200 million in order to sell the license in a separate operation. Not counting Area 8, the Brazilian government has raked in BRL7.9 billion for the B-band licenses, more than twice the BRL 3.7 billion total in minimum bid prices it had set at the start of the process. -By William Vanvolsem; (5561) 244 3095; wvanvolsem@ap.org The Communications Ministry confirmed Tuesday that Telet will in effect have to pay 18% above its bid, due to bidding rules which took effect at the beginning of April. The total the consortium will pay for the Area 6 license therefore is BRL395 million, instead of the BRL334.5 million offered. The auction regulations state that if the unsealing of the bids takes place after the start of April 1998, such an increase should apply, to allow for inflationary and other financial and monetary adjustments. Telet placed its bid in a sealed envelope in June last year when the B-Band licenses auction process began. The process was delayed for almost seven months due to the legal disputes. Telet President Gerard Vasquez said Tuesday the consortium will install 100,000 lines by the end of this year, with 50% going to the Rio Grande do Sul state capital Porto Alegre. -By William Vanvolsem; (5561) 244 3095; wvanvolsem@ap.org