Analyst: VTR, Entel Merger Speculation is Nothing New"

Rumors in Chilean press that triple play operator VTR and multiservices operator Entel may be considering a merger is unlikely to be anything more than mere speculation, Francisco Errandonea, an analyst with Santander Investment, told BNamericas.

While such a deal could bring important operational synergies with VTR adding mobile telephony and some corporate communications and Entel extending its offering with VTR's cable TV, Errandonea does not believe the companies are in talks.

The analyst underscored that these rumors have been coming and going for the last two years and neither company has confirmed it is officially negotiating.

Regardless of the credibility of the current rumors, Entel shares and those of its owner Grupo Alemendral have seen substantial price increases, Estrategia pointed out. On Friday May 25 the shares of the two entities jumped 5.4% and 6%, respectively, on the Chilean stock exchange."

Posted to the site on 29th May 2007