Telemar on the lookout for deals

23 Jun 2004

Ronaldo Labrudi, the president of Brazilian operator Telemar, has said that his company has cash reserves of BRL4 billion (USD1.3 billion) with which it plans to make a series of acquisitions over the coming months. Telemar recently sold its stake in free internet service provider Internet Group (IG) but is thought to be keen to re-enter the ISP market by investing in existing service providers or creating its own ISP from scratch. Telemar’s premier target outside the ISP arena had been a stake in Brazil’s largest local telecoms operator Embratel, but it lost out in the bidding war to Mexican operator Telmex which recently agreed to pay USD400 million for a 19.26% stake in the Brazilian telco.