Brazilian fixed-line operator Embratel is unlikely to face regulatory obstacles in its bid to buy the country’s largest pay-TV provider Net Serviços, predicts Jose Roberto Mavignier, a senior telecoms analyst for consultancy Frost & Sullivan.
In an…
Brazilian fixed-line operator Embratel is unlikely to face regulatory obstacles in its bid to buy the country’s largest pay-TV provider Net Serviços, predicts Jose Roberto Mavignier, a senior telecoms analyst for consultancy Frost & Sullivan.
In an interview with Business News Americas today, Mavignier says that it is unlikely that regulator Anatel will put up a fight over Net. On Thursday Embratel informed the Brazilian stockmarket that it was tendering an offer of B$23 for the shares of Net Serviços it does not already own. This would be a 23.1% premium on the average stock price over the last month and would equate to a deal worth B$4.58bn (US$2.6bn) if successful.
This is a move by the Telmex/Grupo Carso-controlled telco to consolidate its position in Brazil and widen its mandate and operations in the country.
