Telmex: no increase in Embratel bid

15 Apr 2004

Telmex vice president Jose Martinez has been quoted as saying that his company will not increase its USD360 million offer for Brazilian long-distance incumbent Embratel. Analysts had speculated that Telmex would have to up its offer after Calais Participacoes, a holding company backed by local telcos Brasil Telecom, Telemar and Telesp, tabled a bid of USD550 million. MCI has already agreed to sell its 19.26% stake in Embratel to Telmex, but is having to wait for authorisation from the US bankruptcy court before it can complete the deal; a decision is expected on 27 April. Despite offering less cash, Telmex’s offer is widely expected to be accepted because a sale to the Calais consortium could take up to two years to receive authorisation from Brazil’s anti-trust authorities