USD233 million reserve set for Colombia Telecom

3 Apr 2006

The Colombian government has set a reserve of USD233 million for a controlling stake in Colombia Telecom. Potential bidders for the 50% plus one share stake include Telmex, Telefonica, CANTV and a consortium comprising Cablecentro, Swedtel and Phone1. In addition to the purchase price, the winner will be obliged to assume COP7.58 trillion (USD3.3 billion) in debt, mainly in pension liabilities. Bidding is scheduled to begin on Friday. First bids will be in sealed envelopments; subsequent bids are required to be at COP40 billion more than the previous bid.