No sale: do you want to buy a phone company? One is going begging; in a world of privatization, Nicaragua falls behind as bidders walk away; a year declared inauditable

Article Abstract:

Privatization in many developing countries has afforded foreign companies an ideal investment opportunity and a way to assist emerging economies. Nicaragua's planned privatization of a 40% share of telecommunications services company Empresa Nicaraguense de Telecommunicaciones (Enitel), a process begun six years ago, has collapsed. Managed by engineer Raul Barrios, the privatization was to be handled by a group of 11 qualified team members. Politics and nepotism played a significant role in changing the make-up of the original team and privatization law continued to protect family-owned businesses, in control of the country's economy, from sharing crucial financial data. The IMF and World Bank backed the privatization and tied its completion to $47 million a year in aid and $4.4 billion in debt-relief. Telmex and Telefonica were the only two foreign companies to officially bid and both were discouraged over low telephone-service rates, lack of planning concerning Y2K compliance, a non-competitive contract with MasTec Inc. for thousands of new telephone lines and the $2.5 million required, above and beyond the purchase price, to fund a company pension plan.

Acquisitions & mergers, Government regulation, Wired Telecommunications Carriers, Telephone Communications, Telephone communications, exc. radio, Nicaragua, Foreign investments, Laws, regulations and rules, Company acquisition/merger, Economic policy, Telephone services, Securities, Privatization, Privatization (Business), Empresa Nicaraguense de Telecomunicaciones

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Cellular Communications has no hang-ups on mixed message in pact's plan for insiders

Article Abstract:

Cellular Communications Chmn George Blumenthal attempts to enlist shareholder support for a merger with Pacific Telesis and offers a unique plan to insiders. The mobile telephone company plans to lessen the risk to insider shareholders by offering a golden stock option, which allows shareholders to sell all their options for a guaranteed price of around $100 million, or $60 a share. Shareholders who have common shares will be taking a much higher risk than the insider option. Analysts estimate the share price to be anywhere between $20 a share and $100 a share in the mid 1990s. The company's stock closes at $28.25 a share on Jan 22, 1991.

COMMUNICATION, Management, Business planning, Telecommunications Industry, Merger, Bell Regional Holding Companies, Pacific Telesis Group, PAC, Blumenthal, George, Cellular Communications

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