Calais enhances Embratel offer

8 Apr 2004

Latin American consortium Calais Participacoes has improved its USD550 million offer to purchase MCI (WorldCom)’s stake in Brazilian telco Embratel Participacoes, by guaranteeing to pay it USD360 million even if regulators block the offer. Bankrupt MCI rejected Calais’ offer for the stake last month, claiming that regulators would not approve the deal because Calais’ members are the dominant wireline operators in their respective regions in Brazil and it could raise antitrust concerns; it went on to reveal plans to sell its stake in Embratel to Mexican operator Telefonos de Mexico. The Calais consortium – whose members include Geodex Communications, Brasil Telecom , Telemar Norte Leste and SP Telecomunicaçoes, a Brazilian unit of Telefónica – however, has urged MCI to reconsider its offer.