Skip to main content

Telefonica Chile Falls After Purchase Offer Rejected (Update4)

By Nathan Gill and James Attwood
     Oct. 7 (Bloomberg) -- Cia. de Telecomunicaciones de Chile SA fell to the lowest in a month in Santiago trading after minority shareholders blocked an offer by controlling shareholder Telefonica SA to buy shares it doesn't already own.
     Telefonica Chile, as the country's biggest fixed-line carrier is known, dropped 4.1 percent to 870 pesos. The stock had risen 7.5 percent before trading was halted for today's vote in Santiago.
     About 56 percent of shareholders accepted a company rule change required to allow the bid to proceed, falling short of the required two-thirds acceptance. Madrid-based Telefonica SA was seeking to buy the 55 percent of Telefonica Chile it doesn't already own for 1,000 pesos a share for series A shares and 900 pesos for series B stock.
     ``It was a generous offer, in line with what the company was worth on the market, according to all the analysts, but in the end shareholders decided to reject the proposal,'' Telefonica Chile Chairman Emilio Gilolmo told reporters. ``We continue to have responsibility for management of the company and we continue as enthusiastically as before.''
     Europe's second-largest telephone operator aimed to bring its ownership of the Chilean unit into line with its control of other Latin American units, Jorge Abadia, Latin American corporate development director, said by phone Sept. 11, when the deal was announced. The Chilean unit is increasing spending on pay television and Internet services to make up for declines in it telephone business. Profit fell by half last year.
     ``I think they'll keep trying to reach some kind of agreement with the pension fund administrators that both sides think is fair,'' Natalia Aranguiz, an analyst at FIT Research Corredores de Bolsa SA said, by phone from Santiago today.

     Telefonica SA's press representative in Chile declined requests for comment on the possibility of another offer.


Popular posts from this blog

Moving to the Suburbs: Reducciones in Recent Latin American Historiography

In 1503, the Spanish monarchy issued its first decree for the resettlement of indigenous groups in the Caribbean so that they would “live together” and “not remain or wander separated from each other in the backcountry.”[1]

As the European conquest spread to North, Central, and South America, these new settlements – known as reducciones and congregaciones in Spanish and descimentos in Portuguese – became sites of forced labor, evangelism, experimental agricultural, and refuge. Through a series of imperial policies decreed over the next decades and centuries of colonial rule, Spanish and Portuguese officials attempted to reshape the New World, including its human and natural landscapes. How colonial historians explain this process and indigenous peoples’ reactions to it is the focus of this essay.

In a review of the recent historiography of reducciones, several trends emerge that signal a shift in our understanding of the practice. As this paper will show, one common element is that …

77-Year-Old Wall Street Favorite to Face Fujimori in Peru Runoff

By Nathan Gill and John Quigley April 12, 2016 (Bloomberg) -- The victory by Pedro Pablo Kuczynski, a former finance minister, for second place in Sunday’s Peruvian president elections sets up a showdown between two business-friendly candidates, part of a regional backlash against left-wing politicians.
Kuczynski, a 77-year-old Oxford-trained political economist who’s spent more than 50 years championing debt control and free trade, won 21 percent of vote with 96 percent of the ballots counted, according to the electoral office. He will face Keiko Fujimori, who won 39.8 percent, in a second-round vote on June 5.
Click here to read the full story on Bloomberg News.

Bailout Risk Grows for Ecuador After Worst Earthquake in Decades

By Nathan Gill April 19, 2016 (Bloomberg) -- Before a 7.8-magnitude earthquake struck Ecuador on Saturday, the South American nation’s finances were already in tatters as the government struggled to meet payments to municipal authorities, oil companies and even cancer hospitals. Cut off from global bond markets, President Rafael Correa must now find enough money to rehouse thousands.
As volunteers continue to rescue victims from the rubble of collapsed homes and buildings on Ecuador’s Pacific coast, doubts are growing about the country’s ability to pay for the reconstruction. The nation is already in its worst recession since the financial system collapsed in the late 1990s, and international reserves are at their lowest levels in almost seven years.
Click hereto read the full story on Bloomberg News.