Carlos Slim moves closer to Embratel via WorldCom

Analysts are intrigued by Mexican entrepreneur Carlos Slim?s recent moves to buy up the debts of bankrupt U.S. companies, particularly WorldCom. Mr Slim is the controlling shareholder in Telecom Americas, a major player in Brazil and seen as a prospective bidder for BCP. Embratel, Brazil?s incumbent long-distance carrier, is a subsidiary of WorldCom.
In recent months Carlos Slim, who also controls Telefonos de Mexico (Telmex), has bought more than 300 million US Dollars worth of WorldCom?s cut-rate debt. He previously acquired 100m USD from Alestra, part-owned by AT&T, a competitor of WorldCom. ?He?s nibbling away at the edges,? says an expert consulted by TELETIME News, noting that in future this will enable Carlos Slim to pull his weight in the company.
Arturo Elias, Mr Slim?s son-in-law and spokesman for Telmex, recently told David Luhnow, a reporter with The Wall Street Journal, that these acquisitions were merely an investment. No one believes him.

In Brazil these moves are starting to produce speculation about Mr Slim?s motives. If he?s interested in WorldCom, analysts wonder, why not Embratel too? That way he could combine wireless operations with domestic long distance in perfect synergy.