Embratel takes indirect control of Net Servicos

Brazilian telco Embratel Participacoes, which is controlled by Mexico’s America Movil via Telmex, last Friday announced that it had exercised its call option to take indirect control of the country’s leading cable broadband, TV and fixed telephony provider Net Servicos. In a filing to Brazil’s Securities Commission (CVM), Embratel said it has notified Globo Com¬unicacao and Participacoes (Globopar) that it intends to exercise its option to acquire 5.5% of the voting capital of Net Servicos’ parent GB Empreendimentos. This is equivalent to more than 1.077 million common shares of GB, which owns 51% of the voting capital of the broadband and pay-TV provider. Globo currently holds 51% of GB, while Telmex owns the remainder.