Telmex Ups Presence In Brazil

01 July 2004

Telmex, the Mexican telecoms group has continued its expansion into Brazil with the acquisition of a majority stake in Net Servicos, the market's biggest pay-TV provider.

The deal, estimated to be worth between $250 million (€205m; £138m) and $370m, ended weeks of speculation following a $400m deal in April which gave Telmex control of Embratel the biggest long-distance carrier in Brazil.

Net Servicos has been seeking to secure a financial restructuring for debts of more than $318m. So Telmex's ultimate bill rests on the outcome of that settlement.

The pay-TV operation which was founded in 1991, is part of Globo Communicacoes, also known as Globopar, a subsidiary of the publishing to TV group Organizacoes Globo.

The Marinho family owned operation is not only Latin America's biggest media empire but also one of the world's biggest television broadcasters.

Data sourced from: The Wall Street Journal Online; additional content by WARC staff