Chile Almendral In Talks To Buy Entel From Telecom Italia

SANTIAGO -(Dow Jones)- Chilean investment holding company Almendral SA (ALMENDRAL.SN) is seeking to buy Telecom Italia SpA's (TI) Chilean telecommunications unit Entel SA (ENTEL.SN), Almendral informed the local securities overseer SVS in a letter Wednesday evening.

This confirms market and media rumors regarding the possible sale.

"According to what was agreed by the board of directors, Almendral S.A. representatives began negotiations with Telecom Italia. These are currently underway, but there are essential aspects currently pending," the holding company said in its letter.

Telecom Italia currently holds a 54.8% stake in Entel, which Almendral - in association with other partners, according to local newspapers - seeks to buy.

Almendral is tied to local businessmen Eduardo Fernandez Leon and Juan Hurtado Vicuna. Hurtado, along with the local Matte family, in 2000 sold a 29% stake in Entel to Telecom Italia.

On Wednesday, the SVS suspended trading in Almendral. Before the start of trading Thursday, the SVS authorized Almendral trading to resume.

-By Carolina Pica, Dow Jones Newswires; +562-460-8544; carolina.pica@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 20th January 2005