State-owned Empresa de Telecomunicaciones de Bogotá, Columbia’s second largest telecommunications company has given up on finding its perfect partner according to a statement it sent to the country’s financial services regulator Superfinanciera.
The…
State-owned Empresa de Telecomunicaciones de Bogotá, Columbia’s second largest telecommunications company has given up on finding its perfect partner according to a statement it sent to the country’s financial services regulator Superfinanciera.
The telco was looking for a strategic partner to bring in more capital and make the company more competitive with the process supposed to come to an end on September 15. The Bogota municipal government currently holds 86.6% of the company, while minority shareholders have the remaining 13.4%.
However, the company cancelled the process as none of the bidders submitted financial terms during the process.
According to various reports Carlos Slim’s Telmex, Spain’s Telefónica and Brazil’s Oi were all interested in hooking-up with the Colombian company, especially as it has a strong customer base, servicing most of the telephone lines and broadband connections in capital Bogotá.
However, the potential suitors were scared off by the in-laws it would inherit if it consummated its union, including a motley crew featuring the mayor’s office, the telecoms union and city council who have all historically used the telco as a source of funding for their own personal projects.
Also, after a quick check under the bedclothes, the overall proposition was made less attractive as ETB saw its profits drop by 83% just days before selecting a match.
