Telmex improves offer for Embratel in Brasil.(Brazil)(Telefonos de Mexico S.A. de C.V.)(Brief Article)

Latin America Telecom, May, 2004

In a deal that has dragged on for some time and is eminent that Telmex ends as the new controlling shareholder, the Mexican operator raised the ante from US$360 million to US$400 million. Embratel is the leading long-distance and Internet/data backbone in Brazil. Furthermore, it offered a US$12.2 million payment in case the deal falls for antitrust or regulatory reasons.

Also US$50 million would be disbursed at closing. The New York Bankruptcy Court is to evaluate the new offer presently, as MCI is the majority shareholder of Embratel.