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

To: wl9839 who wrote (15345)	5/17/1999 10:11:00 PM
From: wl9839	Respond to of 22640

Further Clarification from Reuters Telefonica, Iberdrola to bid on Brazil mobile shrs SAO PAULO, May 17 (Reuters) - Spain's Telefonica and Iberdrola plan a bid of 550 million reais ($330 million) for all outstanding shares of four Brazilian cellular companies in which the firms already have controlling stakes, the companies announced on Monday. In a joint statement, the companies said Telefonica alone would bid on all outstanding ordinary and preferred shares of Brazilian mobile firms Telerj Celular and Telest Celular. It then would then join partner Iberdrola to bid on Telebahia Celular and Telergipe Celular. The public tender offer will carry a 50 percent premium above the closing stock price on May 14, the statement said. Telecom giant Telefonica last year bought a controlling stake in Brazil's Tele Sudeste Celular holding, which owns Telerj and Telest Celular. It joined Spanish utility firm Iberdrola in a group which won Tele Leste Celular holding, which owns Telebahia and Telergipe. Telefonica, which announced on Monday a 30 percent rise in its first-quarter profit to 257.9 million euros ($275.2 million) in part due to increased mobile business, said the public tender offer demonstrated its faith in the Brazil's economic recovery. ''This shows our vote of confidence in the Brazilian economy,'' said Fernando Xavier Ferreira, president of Telefonica in Brazil. The companies said they filed pertinent paperwork with Brazil's Securities and Exchange Commission (CVM) on Monday. By law, once the CVM approves the details of the offer, it must be carried out within 15 days, it said.