Virtue is its Own Reward
Brazilian companies have realized that short-changing their shareholders can be counter-productive. Investors, market regulators and companies are beginning to stamp out abuse.
|Tagging along for corporate
You don't have to look far for signs of shoddy practice in
Brazil's capital markets. The latest blip on analysts' radar
screens is a proposed rights offering by Net Serviços,
the troubled cable TV operator controlled by
Organizações Globo. Telmex, the Mexican telecoms
giant, recently bought 34% of Net's voting stock for $130
No date has been set for the offer, under which owners of
voting, or ordinary shares (ONs), would be able to buy new
shares at a discount to the price offered to owners of
preferred, non-voting shares (PNs). If the issue does indeed go
ahead, it is likely to precede a change of control. Current
legislation prevents foreigners from owning more than 49% of
the voting stock of Brazilian cable operators, but a bill in
the Senate would relax this limit. Were a change in...
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