ETB seeks USD120 million for 15% stake

Bogota-based telco ETB has revealed that it aims to raise almost USD120 million through the sale of shares scheduled for 13 to 30 May. The company plans to sell a 15% stake in lots priced at between COP600,000 (USD200) and COP250 million (USD85,000); reports in the local press suggest that shares will carry a 6% discount if sold for cash. Analysts have pointed out that the implementation of a ceiling will have little effect on the share issue as the stake, if sold as a whole, would have been unlikely to attract the interest of a major foreign telecoms operator. The Colombian market is characterised by the predominance of state-owned fixed line operators, a factor which would raise concerns for a potential investor of favouritism from the government. ETB is undergoing a democratisation process, but will still be some way from becoming a private company when the conversion is complete.