“Sell sell sell”: smart money in cellular sector says Spanish sizing up South American subsidiary Smartcom’s single strategic sell-off scenario, scheduled shortly (shelving share sale scheme for smallest cellco on Santiago stock exchange)

29 Jun 2005

Analysts have predicted that Spanish power company Endesa is likely to try and sell its Chilean mobile unit Smartcom to a strategic buyer in a single transaction, with the option of floating shares on the stock market a possibility should it fail to find a suitable buyer. Industry rumours have linked Mexican operator América Móvil with a move to buy Chile’s smallest cellco, and domestic rivals Entel and Telefónica have also been named as interested parties. If Entel does make a bid for Smartcom it will be widely seen as a strategic move to block América Móvil from entering the Chilean mobile market, one of five countries in the region in which it has yet to establish a presence in, alongside Venezuela, Bolivia, Costa Rica and Panama.

Chile, Claro Chile