A senior executive of ABN-Amro Bank, one of BCP?s largest creditors, told TELETIME News on Wednesday, April 9, that his institution has no intention of swapping debt for equity in the B-band cellular carrier. This statement contradicts recent reports in the press. Another banking source, however, believes the departure of BellSouth would greatly facilitate negotiations with creditors if Banco Safra remained a major shareholder.
The rumors are seen as a reflection of the urgent need for a solution. BCP has 1.7 million subscribers in metropolitan São Paulo but it?s starting to feel the heat from Telecom Italia Mobile (TIM) in the corporate segment and needs to invest substantially if it?s to migrate to GSM. ?If BCP doesn?t find a solution quickly its value will fall still farther,? says a telecoms analyst with a leading brokerage.
If the price paid for BCP is equivalent to its current debts, which total 1.7 billion US Dollars, the price per subscriber will be 1,000 USD, or 60% more than Vivo paid for TCO via Telesp Celular. Vivo is the newly announced name of the Portugal Telecom/Telefonica Moviles joint venture.
The main contenders for BCP remain Telemar and Telecom Americas. Directors of Telemar make no bones about their interest in bidding for the carrier, saying they have had talks with its controlling shareholders. Metropolitan São Paulo is the main piece missing for Telemar-Oi to complete its national footprint. However, apparently they aren?t prepared to pay more than 500 USD per subscriber, which would correspond to 50% of BCP?s debt. One solution would be to buy only BellSouth?s stake, if it agreed to sell. Observers see that as unlikely.
Telecom Americas is considered the likeliest buyer because Carlos Slim, the Mexican entrepreneur who controls it via America Movil, has plenty of spare cash.
