America Movil Seen Among Possible Bidders For Brazil Cos

MEXICO CITY (Dow Jones)--Mexico's America Movil SA (AMX), Latin America's largest mobile phone operator, is seen as a possible bidder for two Brazilian wireless companies that just went up for sale.

Brazil's Banco Opportunity said Friday it plans to sell at least 50% of Telemig Celular Participacoes SA (TMB) and Tele Norte Celular Participacoes SA (TCN).

Brazilian fixed-line concern Brasil Telecom Participacoes SA (BRP), mobile operator Vivo, and America Movil unit Claro are seen as the most likely bidders.

A spokeswoman for Mexico City-based America Movil said Monday that the company periodically analyzes opportunities in the region, but didn't say whether it plans to bid.

UBS Investment Research noted that both Vivo - a joint-venture of Portugal Telecom (PT) and Spain's Telefonica Moviles SA (TEM) - and Claro have "an important geographic hole in Minas Gerais" state.

America Movil has a license for Minas Gerais, and has begun building infrastructure there with plans to start service in June or July.

"Operationally, it seems clear that Vivo and America Movil need Telemig more than Brasil Telecom does," UBS said in a report Monday. "So presumably, Vivo and/or America Movil would be willing to outbid Brasil Telecom."

And while Vivo needs Telemig more than America Movil, the Mexican company needs the Amazonian region of Brazil covered by Tele Norte, the investment bank said.

"The combined companies would make America Movil a true national player, and consolidate it clearly as the No. 2 player in Brazil," UBS added.

Bear Stearns said in a report that with the level of mobile telephony penetration in Brazil, buying is a better option that building. America Movil could always return its license for Minas Gerais, as it did in Sao Paulo, Bear Stearns added.

America Movil, which has been growing its Brazilian presence at the expense of operating margins, has said it plans to invest $500 million this year in the South America country, or a quarter of its estimated $2 billion in capital expenditure for this year.

-By Anthony Harrup, Dow Jones Newswires; (5255) 5080-3450, anthony.harrup@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 8th March 2005