Millicom, EPM Close to Phone Tie-up

Millicom International Cellular has entered into exclusive negotiations with Empresas Publicas de Medellin (EPM) regarding the possible combination of their Colombian telecom operations, the companies say. No value has been announced for the deal. The pair have partnered for six years. City-owned EPM controls cable and telephony provider UNE EPM Telecomunicaciones, which in turn owns 25% of Colombia Movil. Colombia Movil operates the Tigo brand and is majority owned by Millicom. A more complete combination is being driven by UNE’s move into offering mobile service, which the pair say they would like to better integrate with the fixed telephony. An agreement would involve a shareholder agreement similar to one in place now bwtween the two. Fixed-mobile integration is also what drove Colombia Telecomunicaciones and Telefonica Moviles Colombia to merge last year. The discussions are expected to conclude during the first half of 2013.