Embratel holding offer for voting stock on Dec. 13
Brazilian telephone company Embratel on Thursday said it would hold a public offer for common stock held by minority shareholders on Dec. 13 in the wake of its acquisition by Mexico's Telmex.
The long-distance operator said it would pay 80 percent of the price Telefonos de Mexico (Telmex) initially paid when it wrapped up the acquisition of a 52 percent stake in Embratel for $400 million in late July.
"Our estimates indicate a price ... close to 15.59 reais (per share)," Roberta Kosaka, an analyst at Banco Brascan, said in a research note, adding that she saw little room for the stock to appreciate in the short term.
At that price, Telmex would have to pay about 930 million reais ($329 million) to buy all the stock held by minority shareholders.
Embratel voting stock was 0.33 percent higher at 15.28 reais in early afternoon trade in Brazil. Its preferred shares were 0.59 percent higher at 5.13 reais, while Brazil's benchmark Bovespa stock index was down 0.81 percent. ($1 = 2.825 reais).
(From Reuters, November 11, 2004)
____________