ETB, EPM to Look at Offloading Colombia Móvil"

A coordinating committee is slated to be formed this week by Colombian municipally owned telco ETB and multi-utility EPM to define the precise mechanism for handing over control of their mobile unit Ola to a future strategic partner, a top executive at ETB told BNamericas.

The ceding of control over Ola to a partner willing to inject capital into it comes after Ola incurred large amounts of debt following its 2005 infrastructure and coverage expansion efforts.

A source at one of the parent companies told BNamericas that Bogotá-based ETB and Medellín's EPM are "under pressure on many flanks" to unload Ola due to the debt it has accumulated, which has caused the companies short-term losses.

The type of control could be the sale of 50% plus one of Ola's shares, a majority of members on the company's board of directors, or another, unspecified, mechanism.

ETB president Rafael Orduz said last month that ETB was planning to provide Ola with a fresh injection of capital from its own coffers, while at the same time mentioning that the company was open to a strategic partner which would provide its own capital, as well as technical know-how.

BNamericas.com"

Posted to the site on 14th March 2006