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

To: Tony van Werkhooven who wrote (9548)	11/10/1998 1:21:00 PM
From: Steve Fancy	Respond to of 22640

Treasury's Rubin declines comment on Brazil deal Reuters, Tuesday, November 10, 1998 at 12:14 WASHINGTON, Nov 10 (Reuters) - U.S. Treasury Secretary Robert Rubin declined on Tuesday to comment on a multibillion-dollar rescue package expected to be announced soon for crisis-hit Brazil. "When there are comments to be made and announcements to be made, if there are, I'm sure they'll be made by the appropriate people in the appropriate places," Rubin told reporters after addressing the President's Export Council. Rubin earlier said it was important to help Brazil since a collapse in Latin America's biggest economy "could have very substantial effects on the hemisphere and therefore on us". Monetary sources said on Tuesday negotiations between the International Monetary Fund and Brazil on the rescue package may drag out until the end of the week. 898-8383, washington.economic.newsroom@reuters.com)) Copyright 1998, Reuters News Service

To: Tony van Werkhooven who wrote (9548)	11/10/1998 1:22:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's Tele Centro Sul Jan-Aug Net Pft 233.4 Mln Reals Dow Jones Newswires Tele Centro Sul Participacoes SA - Brasilia, Brazil Eight months ending August 31: Figures in reals (BRL) ($1=BRL1.19). 1998 1997-a Total Operating Revenue 2.18 bln N/A Net Operating Revenue 1.66 bln N/A Operating Profit 485.3 mln N/A Net profit 233.4 mln N/A a. No comparative data were provided. Tele Centro Sul is a spinoff of former federal holding Telecomunicacioes Brasileiras SA, or Telebras. Telebras was split into 12 units in May and privatized in July.

To: Tony van Werkhooven who wrote (9548)	11/10/1998 1:24:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil's Tele Norte Leste To Cut 25% Of Workforce By End '98 Dow Jones Newswires NEW YORK -- Brazilian fixed wireline holding Tele Norte Leste Participacoes SA (TNE) plans to cut its workforce by 25% by year-end, a company spokesman said Tuesday. The Tele Norte Leste holding was privatized on July 29, and is controlled by a consortium led by construction firm Andrade Gutierrez. The company has 32,000 employees on payroll, and 18,000 subcontractors. "The number of staffers cut will be around 8,000," said investor relations representative Jose Carlos dos Santos, who added that the cuts will reach subcontractors in equal measure. Tele Norte Leste is scheduled to list American depositary receipts on the New York Stock Exchange on Monday, Nov. 16. Dos Santos added that the cuts will be done throughout the 16 companies in the holding, in order to eliminate duplication. As an example, he said that every one of the 16 companies has its own investor relations and data processing departments. The official added that Tele Norte Leste will offer an early retirement incentive program but couldn't estimate the cost for Tele Norte Leste. "Telerj offered employees 40,000 reals (BRR) (1$=BRR1.18) in 1996, but the figure will certainly be lower," he said in reference to the Rio de Janeiro state company. Dos Santos couldn't confirm reports that Tele Norte Leste would invest BRR2 billion in 1999. -By Margarita Palatnik; 201-938-2226; margarita.palatnik@cor.dowjones.com

To: Tony van Werkhooven who wrote (9548)	11/10/1998 1:26:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's Fepasa Rail Sold For 245M Reals; 5% Over Min Bid Dow Jones Newswires SAO PAULO -- Brazil's government on Tuesday privatized the last piece of the federal rail system, selling Malha Paulista, better known by its former name Fepasa, for 245 million reals (BRR)($1=BRR1.19), or 5% more than the minimum asking price. The winning consortium, which includes mining giant Companhia Vale do Rio Doce (E.VRD) and Brazil's leading pension fund Previ, outbid one other group that offered the minimum asking price of BRR233.4 million. Fepasa, which serves Brazil's most populous and heavily industrialized state of Sao Paulo, was transferred to federal control last year as part of the state debt renegotiation.

To: Tony van Werkhooven who wrote (9548)	11/10/1998 1:27:00 PM
From: Steve Fancy	Respond to of 22640

Budget: social program cuts correspond to 40.5% of total - Cuts in the social area ministries reach 40.51% of the R$8.671bn adjustment in the new version of the 1999 budget the government sent to Congress yesterday. Projects of the ministries of Health, Education, Labor, Planning, Welfare and Agrarian Reform have lost R$3.51bn. The amount estimated to the so-called "Brazil in Action" programs has been reduced to R$4.8bn, down from R$7.6bn. Among the most affected ministries are those of Transportation, which had resources cut by 42.1%, and Communications, which lost 45.5%. The proposal establishes revenues of R$199.9bn and expenditures of R$183.6bn, excluding the payment of debt interest rates. The projected rate for next year is 24.7% (Selic average), above the 21.89% previously estimated by Finance minister, Pedro Malan. The Treasury expects additional revenues of R$15.3bn with higher Temporary Tax on Financial Transfers (CPMF), the so-called check tax, and Contribution for Social Security financing (Cofins) quotas, but the total tax collection should decline because the GDP is seen to shrink 1% by 1999. Inflation should stand at 2%. The budget for 1999 was adapted as a result of the Fiscal Stabilization Program (PEF), through which the government hopes to obtain a primary surplus (revenues less expenses, excluding interest rates expenses) of R$16.3bn, or 1.8% of the GDP. (O Estado de S. Paulo/ Jornal da Tarde/ Folha de S.Paulo/ Jornal do Brasil/ O Globo) Fepasa's privatization auction confirmed - The Justice system overturned yesterday an injunction impeding the sale of São Paulo railway company Malha Paulista, formerly known as Fepasa. The auction is scheduled for today at 11 a.m. EST, in the Rio de Janeiro Stock Exchange. The company's minimum price has been set at R$233.39m. Three consortia deposited guarantees in order to participate in the process: Ferropasa (CVRD, Bradesco and Previ), Centro Atlântica, headed by CSN, and Ferrovia Inteligente. In 1997, the company had losses of R$1.4bn, compared to a turnover of R$154m. The company's negative performance is a result of mismanagement and scarce investments. (O Estado de S. Paulo/ Jornal da Tarde/ Folha de S.Paulo/ Gazeta Mercantil) Gov't to vote MP's regulating Welfare tomorrow - The government knows that it is to face a hard time to vote tomorrow the Provisional Measures (MP's) which regulate the Welfare reform, mainly because of the insufficient quorum expected in Congress. Leftist parties have already announced they will do whatever possible to hamper the measures passage. Therefore, Welfare minister, Waldeck Ornélas, will hold a meeting with party leaders today to define a strategy aimed at assuring the government's success. The MP's have to be approved before the reform is promulgated, otherwise they could become worthless. (O Estado de S. Paulo/ Jornal da Tarde) Telecom, Philips and Acesita cut employees - Tele Norte Leste (see Telebrás) will dismiss half its 50,000 employees in the 16 companies which form the group. According to the holding directors, the cuts aim at adapting the company to the telephony market competitiveness. The Brazilian subsidiary of Holand-based electronics maker Philips also announced that it would cut 448 workers in São José dos Campos (São Paulo state) unit. According to the company, TV image tubes production was 11% lower in September, compared to August. In the state of Minas Gerais, stainless steel producer Acesita fired 555 of its 4,000 employees through a Voluntary Dismissal Program. (O Estado de S. Paulo/ Jornal da Tarde / Folha de S.Paulo) Brazil could import wheat from US - Brazil could resume wheat imports from the US. Purchases have been suspended since 1996 because the government feared that national plants might be infected by plagues that exist in some regions of the US. Brazil consumes 8 million tons of wheat annually, but produces a mere 3 million tons. The remainder is imported from Argentina and Canada. As a condition to buy the US product, Brazil wants Americans to open its market to Brazilian fruit and fresh meat. (O Estado de S. Paulo/ Jornal da Tarde/ Folha de S.Paulo) (By Sergio Caldas)