GVT, the competitive local exchange carrier for the South, Center-West and parts of the North, has informed the shareholders of Vesper that it?s interested in acquiring its cousin CLEC in the Telefonica region, according to Amos Genish, president of GVT, but nothing has been said about price.
GVT will make an offer once it?s clear how Qualcomm, Vesper?s controlling shareholder, proposes to sell its assets, Mr Genish explains. Licenses might be sold separately from other assets.
Vesper has fixed-line licenses for Regions 1 and 3, and PCS wireless licenses for São Paulo, Minas Gerais, and six Northeastern states.
Analysts say acquisition of Vesper could be justified economically despite Embratel?s large debt (recently restructured) and the financially complicated situation of MCI, its parent company. Embratel needs to keep up efforts to build market share in local access in competition with the ILECs. Vesper?s assets have depreciated owing to its problems with the frequency spectrum, and acquisition could be a cheaper solution for Embratel than building its own network in São Paulo.
