Bidding for Telecom stake begins

22 Dec 2005

The Colombian government is opening the bidding process for a stake in state-run fixed line operator Colombia Telecom. Telecom was slated to open a data room for potential strategic investors to examine the company’s internal documents yesterday; interested parties are required to pay COP40 million (USD17,500) and sign a confidentiality agreement in order to access the information. The telco is aiming to find a strategic partner to inject capital and provide managerial expertise to help it enter the mobile telephony market while also improving service levels. Telecom hired Citicorp several weeks ago to carry out a valuation of its assets and to formulate the bidding process. Local press have named Spain’s Telefónica, Mexico’s Telmex and domestic telcos EPM and ETB as potential investors, although neither EPM nor ETB have publically stated an interest. Telecom Italia recently confirmed that it has no intention of bidding.