Under the agreement, BCI would acquire a controlling stake of Americel and Telet. Currently the two companies lie in the hands of local pension and investment funds as well as fellow Canadian firm-Toronto Iron Works (TIW).
This boost BCI’s stake which already had a 20% of voting shares in each of the two companies. The move strengthens the position of Telecom Americas – consisting of BCI, SBC of the US and Movil Americas of Mexico – as one of three leaders emerging in Brazil’s mobile market.
The remaining two groups are the recently announced joint venture between Portugal Telecom and Spain’s Telefonica; as well as Telecom Italia. Telecom Italia recently purchased two licences in a government auction.
