Analysts expecting thumbs up for Embratel sale

29 Apr 2004

Analysts are predicting that Brazil’s antitrust and market regulators will approve the sale of 19.26% of local telco Embratel to Telmex of Mexico on the grounds that the deal does not offer any ‘regulatory risk or reason to believe the sale will hurt the consumer’. The USD400 million deal, which was approved by Judge Arthur Gonzalez of the New York Southern District Bankruptcy Court on Tuesday, must be approved by the telecoms regulator Anatel, the securities and exchange commission CVM, and the antitrust agency Cade.