Peru was at the center of Latin America's M&A markets in
March and April, amid a quieter than expected start to the
year. Latin America-targeted M&A volume was $18.2 billion
in the first three months of the year, the lowest quarterly
volume since 2005 and down 41% from the same period in 2012 -
even though the global total was up 18%.
Growth was an important consideration for Chile's Empresa
Nacional de Telecomunicaciones (Entel), when it paid $400
million cash for Nextel's Peruvian operations. Entel plans to
reserve funds for the acquisition partly by reducing its
dividend payout to 50% percent of profit, compared to levels of
80% in the past. That strategy, along with a perception that
the buyer paid a high price, disappointed markets. The growth
possibilities are attractive, but Entel...
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