Consolidation Calling

Dec 1, 2008

Brazil’s larger telecom players will have continued opportunity to acquire smaller assets, says Luiz Eduardo Falco, CEO of Telemar, also known as Oi. In mid-November, the company neared approval for its 13 billion reais purchase of Brasil Telecom.

When will the Brasil Telecom acquisition be completed?
We expect the presidential decree to be signed [in late-November]. If the decree is signed, we will be over the most complicated part. We will then go back to [telecommunications regulator] Anatel with the decree that allows one concessionaire to buy another, and ask them to approve our contract. We will then see if we can make it this year. As you know, we have a contract that says if we don’t close this year we pay a penalty. It will be tough, it will be tight, but it can be done.

What about the remainder of the acquisition financing, following the issue of 3.6 billion reais in one-year promissory notes and signing of a 4.3 billion real 2016 loan?
We had funding from Banco do Brasil and from the commercial banks, then...

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