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To: cfimx who wrote (4862)	8/29/1998 5:06:00 PM
From: Michael Burry	Respond to of 78523

I am not simply trusting them. This liability was certainly accounted for before all those foreign and US telephone companies ponied up $20 billion for a controlling stake a few weeks ago. It is unlikely that a company would undertake to spend a billion dollars or more without looking at these risks. We are effectively getting the shares at over a 40% discount to what the market paid for them back at the privatization. Moreover, Telebras has excellent disclosure, not the least because of its privatization. They provide monthly detailed earnings reports in addition to all that the SEC requires. It seems absolutely ridiculous to get bogged down on this. If you don't trust foreign companies, do you think that the American ones would have spent all that money if they thought that the system would crash in 400 days? Mike Mike Mike

To: cfimx who wrote (4862)	8/29/1998 5:07:00 PM
From: Michael Burry	Respond to of 78523

I am not simply trusting them. This liability was certainly accounted for before all those foreign and US telephone companiesponied up $20 billion for a controlling stake a few weeks ago. It is unlikely that a company would undertake to spend a billion dollars or more without looking at these risks. We are effectively getting the shares at over a 40% discount to what the market paid for them back at the privatization. Moreover, Telebras has excellent disclosure, not the least because of its privatization. They provide monthly detailed earnings reports in addition to all that the SEC requires. It seems absolutely ridiculous to get bogged down on this. If you don't trust foreign companies, do you think that the American ones would have spent all that money if they thought that the system would crash in 400 days? Mike