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

To: Jerry A. Laska who wrote (6151)	7/31/1998 2:09:00 AM
From: Steve Fancy	Respond to of 22640

Telebras sale to fuel interest in mirrors-watchdog Reuters, Friday, July 31, 1998 at 01:45 BRASILIA, July 30 (Reuters) - The successful sale of Brazilian telephone firm Telebras (SAO:TELB4) will heighten interest in fixed-line concessions that will compete from next year with companies carved out of the Telebras system, the head of a telecommunications watchdog said Thursday. Companies which missed out on some of the juicier companies on offer -- like Telesp (SAO:TLPS3), the fixed-line company which covers prosperous Sao Paulo state -- can now apply for concessions to set up "mirror" companies in the same areas. "I think these mirror companies will now arouse greater interest than before," ANATEL president Renato Guerreiro told a news conference. "This is the great remaining business opportunity in the telecommunications sector in Brazil." Brazil sold the 12 companies of the Telebras (NYSE:TBR) system Wednesday for a total of $19 billion, representing a premium of more than 60 percent over the asking price of $11.7 billion. "The result of the Telebras auction will be a warning light for companies which did not participate," said Guerreiro. "They are going to ask themselves: did we lose out on a good business opportunity?" Among the companies sold Wednesday were long-distance and international carrier Embratel and the three fixed-line subsidiaries of Telebras: Telesp, Tele Centro Sul and Tele Norte Leste. Each of those companies will face a rival concession-holder in a move the government hopes will stimulate competition. Guerreiro confirmed Wednesday that ANATEL expected to announce the winners of the "mirror" concessions in December. The watchdog will publish provisional bidding details on August 13, with definitive rules coming out on September 3, Guerreiro said Thursday. Companies interested in a "mirror" concession must submit bids by November 3 and the board of ANATEL will ratify bidders by December 3, providing there are no legal challenges. "The mirror companies will be functioning by the first semester of 1999," Guerreiro said. ANATEL officials said it was not yet decided whether the concessions would be granted via auction or public bidding. 5561 223-5918, giancarlo.summa@reuters.com)) Copyright 1998, Reuters News Service

To: Jerry A. Laska who wrote (6151)	7/31/1998 2:12:00 AM
From: Steve Fancy	Respond to of 22640

FOCUS - Little Asia-to-LatAm shift from Telebras Reuters, Friday, July 31, 1998 at 01:45 By Ian Simpson NEW YORK, July 30 (Reuters) - The record-breaking sell-off of Brazilian phone company Telebras (SAO:TELB4) (NYSE:TBR) (NYSE:TBH) is unlikely to prompt investors to switch out of Asian markets into Latin America, analysts and fund managers said Thursday. Although they hailed the $19 billion privatization Wednesday as a crucial win for Brazil, they told Reuters worries overshadowing emerging markets, including Latin America, were too big for the sell-off alone to scatter. "There must be a little bit of a salutary effect on emerging markets around the world, but it's one that can be easily squashed by a crisis in another country," said Tod Lenagh, managing director of equities at Clemente Capital. Richard Casey, emerging markets strategist at Donaldson, Lufkin & Jenrette, said few international investors even remained in Asian markets after being pounded by a year of bad economic news. Emerging markets also have been hurt by fears about the Russian and Japanese economies, the sex scandal involving U.S. President Bill Clinton and collapsing prices of commodities. One emerging markets barometer, the Morgan Stanley Capital International index <.CEMG> for the sector, has fallen 27 percent in the last year. "I don't know that there are that many people to shift (investments) out of Asia" into Latin America, he said. Casey added, "You really need something to ease concern over these big external problems before things turn around." Brazil's reformist government sold Telebras in 12 parts Wednesday to major international telephone companies. Brazil got 60 percent more than its asking price, and the privatization was by far the biggest single auction of state assets ever. Telebras American Depositary Receipts (ADRs) closed up 6-9/16 at 124-9/16 in heavy trade. New so-called HOLDR ADRs, which group the dozen spun-off companies in an single unit, closed up 7-1/8 to 125-5/8. Rosemary Sagar, head of global investment at U.S. Trust, said most emerging market portfolio managers heavily favored Latin American markets over Asia. She said the Telebras sale could prompt investors to move into Latin American markets over the next one to three months. However, Asian markets could start to bottom out six months to a year from now, pulling in bargain-hunters. "We're already seeing some opportunities there already and expect to see more in coming months," she said. However, Scott Schwager, emerging market strategist at Deutsche Bank in London, said Telebras' ADR long had been seen as a proxy for emerging markets and the sell-off was good news for the sector. "Of 30 markets I track, I see very little red," a color signifying a drop in price, he said. "Good news for Brazil should be good news for other emerging markets." Copyright 1998, Reuters News Service

To: Jerry A. Laska who wrote (6151)	7/31/1998 2:26:00 AM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Jerry, who knows. On one hand, we've got this document from NYSE (posted above) that seems to be dated July 30th suggesting this week and we've got the Merrill HOLDR document (posted above) dated the 29th suggesting the same, on the other hand, most news releases I've seen in the last two days state something to the effect of "could list as eary as next week". Could catch us off guard any morning now. Looks like eight of 'em list right off the bat. Thanks for the help with Oracle's questions. Crossing my fingers. Good luck Jerry! You and I both deserve it. sf