Embratel snaps up Net Servicos shares

8 Oct 2010

Brazilian telco Embratel has acquired shares worth BRL3.3 billion (USD2 billion) in local cable operator Net Servicos, taking its ownership to 35%. The deal, which comes after the original auction due to be held on 29 September was postponed, is the latest step in America Movil’s plan to offer full telecoms services in Brazil via Embratel, Net and mobile unit Telecom Americas (Claro). Net’s controlling shareholder, however, remains Globo Comunicacoe et Participacoes, since under Brazilian law only domestic companies are allowed to own control of pay-TV operators in the country.