Telmex increases Embratel bid

22 Apr 2004

Despite earlier reports that it would not do so, Telefonos de Mexico (Telmex) has increased its offer for MCI (WorldCom)’s stake in Brazilian long-distance and international telecoms service provider Embratel in the face of increasing competition from the Calais consortium. Telmex has upped its bid from USD360 million to USD400 million, while Calais – which consists of Brazilian incumbents Tele Norte Leste Partipaçoes, Telefónica and Brasil Telecom Partipaçoes – has offered USD550 million, guaranteeing to pay USD360 million even if the deal is rejected by regulators. MCI has said that it has accepted the new bid from Telmex.