Embratel pushes back Net Servicos tender to 7 October

29 Sep 2010

Brazilian telco Embratel Participacoes, a subsidiary of Latin American telecoms giant America Movil (AM), has postponed a tender for preferred shares in local cable TV operator Net Servicos, Reuters reports. Embratel will now hold the auction on 7 October 2010, pushing the date back from 29 September, with the company noting that the delay is needed in order to ensure that it has updated the tender documentation to include rules that were communicated to it yesterday by the Brazilian stock market regulator. AM revealed that the technical department of the Comissao de Valores Mobiliarios (CVM) has said that the one third of Net Servico’s preferred stock that Embratel is looking to acquire needs to be calculated on the basis of total preferred Net stock in circulation on 4 September 2000 (1.2 million preferred shares). Further, the regulator also noted that if the holders of the remaining two-thirds of Net Servico’s preferred stock in circulation on the date of the auction accepted the tender, Embratel would also be required to buy these shares.

Brazil, America Movil (AM)