Embratel Announces MCI Enters Agreement to Sell Its Investment to Telmex
RIO DE JANEIRO, Brazil, March 15 /PRNewswire-FirstCall/ -- Embratel
Participacoes S.A. (BOVESPA: EBTP3 EBTP4) (Embrapar), the Company that holds
98.8 percent of Empresa Brasileira de Telecomunicacoes S.A. - Embratel,
announced today that it has been informed by its controlling shareholder, MCI
(WCOEQ MCWEQ) that MCI has entered a definitive agreement to sell its 19.26
percent economic interest and a 51.79 percent voting interest in Embrapar to
Telefonos de Mexico, S.A. de C.V. (BMV: TELMEX) (LATIBEX: XTMXL) (Telmex) for
US$360 million in cash. Completion of the sale is subject to approval by the
U.S. Bankruptcy Court and Brazilian regulatory authorities with filings to
anti-trust and securities agencies.
Embrapar was also informed by MCI that the Telmex offer was approved by both the
MCI Board of Directors and by its Official Committee of Unsecured Creditors.
Embratel is committed to its customers, employees and stockholders. "While this
process is taking place, Embratel will remain focused on serving corporate,
government and residential clients with the quality that has rendered its
leadership position as the premium telecommunications service provider in
Brazil,"said Jorge Rodriguez, President of Embratel. The Company will continue
to endeavor to foster the interests of its clients, employees, shareholders and
various stakeholders.
Embratel is the premium telecommunications provider in Brazil and offers an
ample variety of telecom services -- local and long distance telephony, advanced
voice, high-speed data transmission, Internet, satellite data communications,
and corporate networks. The company is a leader in the country for data services
and Internet, and is highly qualified to be an all-distance network carrier in
Latin America. Embratel's network spreads countrywide, with almost 29 thousand
kms of optic cables, which represents about one million and sixty-nine thousand
km of fiber optics.
The information contained in this release may be deemed to include
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended, that involve risk and uncertainty. Although the Company believes
that its expectations are based on reasonable assumptions, it can give no
assurance that its expectations will be achieved. Actual results may differ
materially from these expectations due to MCI's bankruptcy proceedings and
matters related thereto, as well as regulatory risks and other risks referred in
the Company's filings with the CVM and SEC. The Company does not undertake any
obligation to release publicly any revisions to its forward- looking statements
to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
Contact: Silvia M.R. Pereira
Embratel Investor Relations
tel: (55 21) 2121-9662
fax: (55 21) 2121-6388
email: or DATASOURCE: Embratel Participacoes S.A.
CONTACT: Silvia M.R. Pereira of Embratel Participacoes S.A., Investor Relations, +011-55-21-2121-9662, fax: +011-55-21-2121-6388, or or Web site: http://www.embratel.net.br/
|