Telefónica Móviles launches buyout talks with CTC shareholders

19 Apr 2004

Spain’s Telefónica Móviles is reported to be involved in talks with its Chilean division Telefónica CTC Chile over the possible acquisition of CTC’s mobile subsidiary Telefónica Móvil. Parent company Telefónica gained control of the majority of its Latin American assets – in Argentina, Brazil and Peru – in 2000, but the Chilean operations were not included in the buyout. The operator is now looking to acquire the Latin American assets of US-based BellSouth and merge them with its own operations, but first wants to gain full control of CTC’s Telefónica Móvil. The deal will see Telefónica Móviles acquire BellSouth’s ten businesses in the region, boosting its Latin American subscriber base by around a third. Telefónica Móviles has hired Morgan Stanley and Merrill Lynch & Co to evaluate its USD5.85 billion offer for the assets and is seeking to assure its shareholders that the purchase is not a risky one and that their dividends are safe.