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

To: Steve Fancy who wrote (6556)	8/12/1998 12:32:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's Telesp Celular Reports Its First Profit as Private Firm Dow Jones Newswires SAO PAULO, Brazil -- Telesp Celular SA, Brazil's largest cellular telephone operator, said Tuesday it had a net profit in the first half of 1998 of 214.1 billion reals ($183 million) on net sales of 768.2 million reals. No comparative results were available since Telesp Celular was spun off this year from its parent Telesp in preparation for the July 29 privatization of Brazil's Telecomunicacoes Brasileiras. Portugal Telecom won the auction for the controlling stake in Telesp Celular, equal to 51.8% of voting capital, with a bid of 3.59 billion reals, or 226% more than the minimum price. Portugal Telecom will transfer a 36% stake to strategic partner Telefonica SA of Spain and another 13% to Brazilian investors, keeping only 51% of the piece that it bought. In June 1998, Telesp Celular had 1,520 employees. Personnel expenses in the first half were 26.1 million reals, almost the same as the social security charges of 25.3 million reals in the period. Operating costs for outsourcing and rentals were the biggest bite into earnings at 298.6 million reals. Financial costs were 68.8 million reals.

To: Steve Fancy who wrote (6556)	8/12/1998 12:36:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Brazil BNDES won't finance "mirror" telecoms Reuters, Wednesday, August 12, 1998 at 12:01 SAO PAULO, Aug 12 (Reuters) - Brazil's national development bank does not intend to finance the purchases of "mirror" telephone concessions that will compete with recently privatized Telebras subsidiaries, BNDES vice-president Jose Pio Borges said on Wednesday. "We will not finance the mirror companies," Pio Borges told reporters after a meeting of Brazil's National Privatization Council. The BNDES offered credit to Brazilian companies taking part in last month's $19 billion sale of Telebras. It has also financed purchases made by Brazilian and foreign buyers of other state-owned assets. Pio Borges said there was a possibility the National Treasury might provide financial help for companies interested in buying the mirror concessions. Under a plan for Brazil's telecommunications sector, the government will auction four "mirror" concessions to private groups. The concessions will compete with the three fixed-line regional units of Telebras and long-distance carrier Embratel. The government plans to sign the contracts for the "mirror" concessions by the end of December, and providing there are no legal challenges, operations would begin in the first half of 1999. Pio Borges, speaking from his car window after the end of the meeting, declined to comment further. Copyright 1998, Reuters News Service