Eduardo Eurnekian and Ernesto Gutiérrez Conte fly closer Telecom Argentina. To achieve the final landing in the disputed local phone and take charge of the Telecom Italia will sell, employers of America Corporation and Aeropuertos Argentina 2000 thought a partner of weight: they sought the support of the powerful magnate Carlos Slim. With it, between Saturday 19 and Sunday 20, will meet in New York to hammer out the details of the deal that will unite into society to submit its proposal.
Three is a company that competes with other bidders in dance, would have weight factors when submitting the offer: local executives sound entry into government and financial back as the Mexican, who also has expertise in business. However, for landing multiple instances to be overcome. Among them, the repairs that could have local owners of Telecom Argentina, Werthein, and some questions regarding the financial and equity structure to be implemented.
When in late January, Ernesto Gutierrez FORTUNA you anticipating that the group was led by "near Telecom" was not even, say, or embryonic relationship with Slim. The first contacts, sources have closely followed the negotiations, were generated under the "Council of the Americas", the international forum that brings together entrepreneurs from the region. So he and Slim Gutiérrez Conte had initial discussions then were consolidated, although the owner of Telmex also linked him with other parties to enter the phone: the logistical entrepreneur Alfredo Roman.
However, this closeness with the owner of Exolgan was losing weight and, in contrast, employers in America Corporation oiled links. So much so that in the last 15 days, much progress in negotiations between the parties. The Mexican is always interested in growth potential in its phone business. Since 2000 he was its focus on Telecom, an important piece to move the country head to head race he has with Telefonica in the Spanish of the region. Here seek to enter the residential market as Telmex, with local presence, but provides services to businesses. The total value of Telecom Argentina, according to estimates by industry specialists, is U $ S 3,500 million, but if you apply the "Argentine cost" is U $ S 2,900 million for the discount rate applied by the country risk , currently 730 pp.
Reserve Meeting
The Italians ruled forced to divest under the National Defense Commission of Competition (CNDC) put a price on his part: U.S. $ 500 million. The actual value of 50% of its interest in quelling (controlling the telephone), which represents 18% stake in Telecom Argentina, is U $ S520 million if the discount rate applied by the country risk. Of course, here are also other factors when negotiating: the pressure to print the Italian Government to the arising of the company, the prohibition on telephone companies can provide TV signal, the high or low risk country that may provided, the method of payment to offer potential buyers, among other items that define the price.
Either way, the amount of this operation is high for most potential local buyers. So Conte Eurnekian and Gutierrez sought to address wider behind the operation, which would be a leveraged buyout with the shares of Telecom Argentina and would be supported by Inbursa, a finance company Slim group, led by his son Marco Antonio.
However, for now, those familiar with the interfacing of the topic, do not talk about the direct involvement of companies like Telmex, Inbursa, AA2000 or Corporate America in the structuring of the deal, but only the names of three entrepreneurs who lead the union.
This weekend, 19 to 20, almost autumnal in New York City, taking advantage of attending a forum within the UN, Carlos Slim, Ernesto Gutierrez Eduardo Eurnekian Conte and shook hands before sitting down to determine, in a private meeting, how will the contribution of Mexican businessman to join the tripartite society.
At that meeting and would not need to agree on how to go for the Italian part of Telecom. Here the three terms in the last stitches to give the conditions which will set the society, something which is becoming a fact. That paper, say those who are close to the negotiations, will be left to a consulting company that has already been chosen for this purpose so that in the early days of the week beginning Monday 21, with the onset of spring in these latitudes, legally grant him the deal that will unite from now on until they file the formal offer to Credit Suisse, the investment bank appointed by Telecom Italia to carry out the operation.
Where to dig two
The Werthein, meanwhile, are closely following all the strategies and rumors that slide around Telecom. And also evaluating the possibility of each candidate that could have short-term. The company Eurnekian-Gutierrez, who shuffled in principle, be welcomed by the local owners of Telecom. Although, of course, not the same be a member of two Argentine companies, which be one of the world's richest men and owner of the most powerful telecommunications conglomerate in Latin America.
"With Eduardo Eurnekian and Ernesto Gutierrez have been contacted by the theme of Telecom Argentina and have very good relationship. In talks that have kept it became clear that stakeholders will be those who manage the various circumstances that involve a purchase transaction, since the Werthein not be an obstacle in that process. If you happen to be, finally, buyers, be agreed contract terms, "said a company source linked to the W.
The situation changes color when you put on the table the possibility that it is Carlos Slim who entered. "With Slim we are not sure which is the same as with Eurnekian and Gutierrez. The incorporation of a shareholder of that size has its advantages and disadvantages, Slim input means having great international partner to deliver value to the company. But disadvantage is seen as a huge asymmetry of power between the participants. This means that in the case of Slim income should be explored with the details of the contract time, "adds the source.
Of course, before this flurry of rumors about possible bids, the Italians do not stay still. On Wednesday 16 filed an appeal with the Justice against Resolution 483 of the NCDC, which forces them to disinvest. In this presentation, Telecom Italia calls for "suspension of the effects of that decision."
Meanwhile, there are many names in dance around the phone, such as Grupo Clarin and Mario Quintana, Alfredo Román well. However, from the side of local partners to ensure telecom quee no one has approached them expressing interest in joining the company.
There is also another point: in front of any specific offer to buy part of Telecom Italia, the right of preference has he W. According to the contract, before the retreat of the Europeans and the presence of a particular offer, they should first consult Werthein.
They have a deadline by which to be issued in writing whether or not they are interested in moving forward on that part. If they are, s'plo need to match the proposal and the right of preference, they stay with their participation.
Voices from the Market
Some industry analysts are skeptical that Slim can enter Telecom, at least as an explicit action, since it would oblige the regulatory authorities to make tough decisions as to how it will shape the market, especially in the field of mobile telephony. If you buy Slim, would remain under its control and Staff course.
A first step that arises from this situation is that the state forced to divest. But another, prior to this, is that companies remain independent. "One possibility is that Pesonal stay aside from the possible transaction and that future is sold to another company interested in entering the Argentine market," analyst speculates Enrique Carrier.
For his part, Carlos Blanco, another telecommunications specialist, believes that the placing of Slim, in partnership with Ernesto Gutierrez and Eduardo Eurnekian, could be "two steps" "For now, Slim would only financier but surely will have a refusal to buy the part in question later, "he adds.
The truth is that Telecom is tempting to new applicants. Beyond the hors Telefonic the possibility of providing triple play, as decided by President Cristina Kirchner to siphon votes and win approval of the Law on Audiovisual Communication Representatives. This loss of opportunity, however painful and can lower the price of the telco, for the moment does not mean that many think of the purchase. Because business remains strong. Very big.