Carlos Slim Cancels Plans to Delist Brazil Cable TV Net Servicos
First Published Friday, 6th July 2012 11:59 am - © 2012 Dow Jones
SAO PAULO--Brazilian phone company Embratel Participacoes SA (EBTP4.BR), controlled by Mexican billionaire Carlos Slim, is halting its plans to delist shares of its cable television unit, Net Servicos de Comunicacao S.A. (NETC, NETC4.BR), after minority shareholders refused the price offered, the company said late Thursday in a statement.
In June, Embratel, controlled by Mexico's America Movil SAB de CV (AMX, AMOV, AMX.MX), offered 26.64 Brazilian reais ($13.18) for each Net share it doesn't own.
Minority shareholders, who refused the offer and hold just 1.8% of Net's shares, asked for a higher price for each share.
Embratel already owns almost all of Net's shares.
Earlier this year, Embratel took control of GB Empreendimentos e Participacoes, the holding company that controls Net, after buying 5.5% of GB's voting shares for BRL6.44 million from Globo Comunicacoes e Participacoes S.A, or Globopar.
That purchase was part of a deal struck in 2005, under which Embratel agreed to buy control of Net once legislation was changed to allow foreign-owned companies to own Brazilian cable-TV firms. That law was changed in 2011.
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