Nortel and Alcatel say they have received four offers for Intelig besides GVT?s. The equipment vendors financed the competitive long-distance carrier?s network and have the effective power to decide on a deal. According to Jonio Foigel, president of Alcatel Brazil, one of the five bids is a management buyout from a group of Intelig executives led by CEO José Carlos Pereira da Cunha. Brasil Telecom isn?t on the list since it offered to acquire only 19.9% in compliance with regulatory restrictions on ILECs. Mr Foigel won?t identify the others but says any deal will have to include a restructuring of Intelig?s debts. Alcatel is its biggest creditor, having financed network buildout to the tune of some 135 million US Dollars equivalent. Nortel?s supply contracts are worth about 30m USD. Alcatel Brazil was authorized only on October 8 to begin formal negotiations on a deal by the parent company in France. The five bidders display varying degrees of interest in Intelig, he says, and so far it?s impossible to discern a potential winner. GVT was the last to join the list but has ?made up for lost time? in determination to acquire the carrier.
Nortel
Hervé Adam, managing director of Nortel, also confirms negotiations with GVT on a transfer of Intelig?s debt. Acquisition of Intelig by GVT would be positive for Nortel. ?If we reject GVT?s offer now, I don?t know when another will appear or how long Intelig will hold out until it?s forced to file for bankruptcy,? he says. Like Intelig, GVT is also a customer of Nortel, which has financed 240m USD over a five-year period.
