BellSouth and Telefonica Moviles Complete Transfer of Operations in 5 Latin American Countries
October 28 2004 - 1:02PM
PR Newswire (US)
BellSouth and Telefonica Moviles Complete Transfer of Operations in
5 Latin American Countries Brings total operations transferred to 8
ATLANTA, Oct. 28 /PRNewswire-FirstCall/ -- BellSouth Corporation
(NYSE:BLS) and Telefonica Moviles S.A. (NYSE:TEM), the wireless
affiliate of Telefonica, S.A. (NYSE:TEF), announced today that the
two companies have completed the transfer of BellSouth's ownership
interest in five wireless operations in Latin America: Colombia,
Nicaragua, Peru, Uruguay and Venezuela. Telefonica Moviles has
taken control of the operations of these properties, effective
immediately. BellSouth will receive $ 2.5 billion for its interests
in the five properties and will recognize a gain of approximately
$385 million, or approximately 21 cents per share, in the fourth
quarter of 2004. The two companies announced in March 2004 that
they had reached a definitive agreement for BellSouth to sell its
interests in 10 Latin American operations to Telefonica Moviles.
The agreement provided a purchase price based on total enterprise
value of $5.85 billion. The sale of BellSouth's interest in the
operations in Ecuador, Guatemala and Panama closed on October 14,
2004. The transfer of BellSouth's interest in the operations in the
remaining two Latin American countries (Argentina and Chile) is
subject to obtaining all requisite governmental approvals. We are
working diligently to obtain those approvals, and we expect to
obtain them either in the fourth quarter of 2004 or first quarter
of 2005. About BellSouth Corporation BellSouth Corporation is a
Fortune 100 communications company headquartered in Atlanta,
Georgia and a parent company of Cingular Wireless, the nation's
second largest wireless voice and data provider. Backed by award
winning customer service, BellSouth offers the most comprehensive
and innovative package of voice and data services available in the
market. Through BellSouth Answers(R), residential and small
business customers can bundle their local and long distance service
with dial up and high speed DSL Internet access, satellite
television and Cingular(R) Wireless service. For businesses,
BellSouth provides secure, reliable local and long distance voice
and data networking solutions. BellSouth also offers online and
directory advertising through BellSouth(R) RealPages.com(R) and The
Real Yellow Pages(R). More information about BellSouth can be found
at http://www.bellsouth.com/ . In addition to historical
information, this document may contain forward- looking statements
regarding events and financial trends. Factors that could affect
future results and could cause actual results to differ materially
from those expressed or implied in the forward-looking statements
include: (i) a change in economic conditions in domestic or
international markets where we operate or have material investments
which would affect demand for our services; (ii) currency
devaluations and continued economic weakness in certain
international markets in which we operate or have material
investments; (iii) the intensity of competitive activity and its
resulting impact on pricing strategies and new product offerings;
(iv) higher than anticipated cash requirements for investments, new
business initiatives and acquisitions; (v) unfavorable regulatory
actions and (vi) those factors contained in the Company's periodic
reports filed with the SEC. The forward- looking information in
this document is given as of this date only, and, BellSouth assumes
no duty to update this information. DATASOURCE: BellSouth
Corporation CONTACT: Jeff Battcher of BellSouth Media Relations,
+1-404-249-2793 Web site: http://www.bellsouth.com/ Company News
On-Call: http://www.prnewswire.com/comp/095650.html
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