The minimum bid for a controlling stake in Colombia’s state owned telecommunications company, Telecom, will be $233 million. The government set the price after a valuation by Citicorp. Bidders have until Tuesday to submit their technical offers and join the auction. The government is selling off 50% plus one of the shares in the company and has set a minimum price after calling off a previous sale when the price was too low. Mexico’s Telmex’s bid then valued the company at $350 million. Telmex, Spain’s Telefonica, Venezuela’s CANTV and the consortium Cablecentro-Phone One-Swedtel are expected to take part in the contest.
Category: Regions
Posted inDaily Brief
Colombian Economy Grew at Fastest Rate for a Decade in 2005
The Colombian economy expanded 3.74% percent in the fourth quarter of 2005 and 5.13% in the full year. The country benefited from surging consumer demand last year as interest rates fell making it cheaper for people to purchase on credit. A strong currency also held down the cost of imported goods. The Colombian economy under President Alvaro Uribe has picked up in the last two years following several years of very moderate growth. The president has controlled much of the violence that has plagued the country and restored greater order to the economy, helping it to grow and boosting investor confidence.
Posted inDaily Brief
World Bank Forgive $1.5 Bln in Bolivian Loans
The World Bank wrote off $1.5 billion worth of loans to Bolivia as part of a program to ease the debt burden on 18 of the world’s poorest country. Evo Morales, the country’s newly-elected populist president, thanked the institution and said the $140 million that would have gone to pay down the loan this year will be spent on social programs. At the end of last year Bolivia had approximately $5 billion in foreign debt. Separately, the president ruled out a nationalization of the country’s airline Lloyd Aereo Boliviano, which is almost bankrupt. He called on unions to lift their protests and blockades while negotiations with management over wages and conditions continue.
Posted inMagazine
Remittances to Latin America and the Caribbean
Remittances to Latin America and the Caribbean by Donald Terry, Manager, and Pedro de Vasconcelos, Coordinator, Remittance Program Multilateral Investment Fund Call it the case of the missing billions. For […]
Posted inMagazine
Man With The Plan
AMLO’s economic advisor explains how his left-leaning presidential candidate plans to shake things up in Mexico without spooking the financial world.
Posted inMagazine
Japan’s Latin American Ex-Pats and their Impact on Remittances
Japan’s Latin American Ex-Pats and their Impact on Remittances by Jan Smith, Director Financial Services Practice, and Renée-Maude Lebrun, Consultant, InfoAmericas Until recently, most of the attention on remittances was […]
Posted inDaily Brief
Remittances to Latin America Rise to $53.6 Bln in 2005
Remittances from immigrant workers in the U.S., Europe and Japan to Latin American countries rose 17 percent last year to $53.6 billion, according to the Inter-American Development Bank. The cash is the largest source of foreign funding for many countries, overwhelming the amount received in foreign aid. Mexico was the largest recipient at $20 billion followed by Brazil with $6.4 billion.
Posted inDaily Brief
General Motors to Build New Plant in Mexico
General Motors is set to build a new plant in Mexico to produce compact and sub-compact cars at a cost of at least $600 million, part of which will be subsidized by the Mexican government. The plant in the central state of San Luis Potosi will employ 1,800 people and assemble 30 cars an hour. GM is laying off workers in the United States because high labor costs make plants there uncompetitive.
Posted inDaily Brief
Colombia Telecom Sale Set for April
The Colombian government will set the sale date for the 50 percent plus one share of the state-owned telecom company, Colombia Telecom, for April 7. Citicorp is advising the government on the sale and it expects to receive approximately $350 million from the privatization. Spain’s Telefonica, Mexico’s Telmex and Venezuela’s CANTV are all expected to bid. The government is holding on to almost half the company to ensure the privatization does not lead to the creation of a private quasi monopoly as it did in many Latin American countries, most notably Mexico.
Posted inDaily Brief
Cemex Plans Dubai Plant
Mexican cement producer, Cemex, has announced it is to invest $50 million in building a new grinding facility in Dubai, UAE, to meet growing local demand for its product. Construction is due to be completed in 2007, taking production capacity in the region to 1.6 million metric tonnes. The money to be invested is part of $500 million allocated by the company this year towards its worldwide capital expansion program. Cemex began operations in UAE last March when it acquired British RMC Group. Its operations there focus on ready-mix concrete production and ground slag supply to the booming local construction industry.