Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : PLFM - Undervalued with great potential -- Ignore unavailable to you. Want to Upgrade?

To: Brian K. Harris who wrote (3255)	6/7/1998 2:46:00 PM
From: Bruce A. Thompson	Read Replies (1) \| Respond to of 9096

Telebras Update... >Sunday June 7, 12:02 pm Eastern Time >Brazil min sees sale of four Telebras units as key >SAO PAULO, June 7 (Reuters) - Brazil's Communications Minister Luiz >Carlos Mendonca de Barros is pinning his hopes on the sale of four >units on Telebras (TEL_p.SA) (TBR - news) when the holding is >privatized in July, a local daily reported on Sunday. >In an interview with Folha de Sao Paulo newspaper last week and >published on Sunday, Mendonca de Barros said the sale of three >wireline holding firms and one long-distance carrier was key to the >success of the auction, slated for July 29. >Telebras was split into 12 units -- three wireline and eight >cellular phone holdings plus international carrier Embratel -- in >late May as a prelude to its sell-off. >''The success of the sale will depend on the four -- Embratel, >Telesp, Tele Centro-Sul and Tele Norte-Nordeste-Leste -- since the >four represent 85 percent of the total value of Telebras,'' the >minister was quoted as saying. >Telesp serves Sao Paulo state. Tele Centro-Sul covers several >central and Amazonian states plus the states of Parana and Santa >Catarina. Tele Norte-Nordeste-Leste serves five more Amazonian >states, Northeastern states and Bahia and Sergipe. >''We hope to sell all of them, but if that's not possible, we will >not hand them over at just any price,'' he said. >The government plans next week to release bid specifications for the >Telebras sale, including minimum prices for the 12 holdings. >Asked for how much the minister would pay for Telebras, he said: >''I'll put my bid at the minimum price.'' >Referring to a report by Merrill Lynch, cited by Folha, that >Telebras may be valued at around $72 billion, Mendonca de Barros >said, ''Telebras shares are quoted at 125 reais or $110 on the local >bourses, which makes the holdings worth $37 billion in the market. >That means Merrill Lynch is calculating a 100 percent premium on the >sale,'' he said. >Telebras' common shares closed at 103 reais last Friday, and its >preferred at 131 reais, up 0.98 percent and 1.55 percent >respectively. >Mendonca de Barros also assured investors Telebras' privatization >contract will not change even if President Fernando Henrique Cardoso >is not re-elected in October. >''There are no risks whatsoever since the rules are already >established,'' he said, adding it was a 25-year contract. >His comments came amid last week's sharp fall in local stock prices, >including Telebras, triggered by a weekend poll that showed a >decline in popular support for President Cardoso. >($1 equals 1.1521 reais) -------------------------------------------------------------------------------- More Quotes and News: Telecomunicacoes Brasileiras SA (NYSE:TBR - news)