An American in Warsaw; U.S. businesswoman challenges old phone monopoly

Article Abstract:

Under the direction of new chief executive Barbara J. Lundberg, Poland's largest and most complicated conglomerate, Elektrim S.A. plans to compete with Poland's former state telephone monopoly in wireless and traditional telephone services. Part of her plan is underway, in a deal with Vivendi S.A., the French media and telecommunications firm, in which Vivendi will invest $750 million or so to acquire 30 percent of Elektrim's telecommunications concerns, to be grouped into a new joint-venture firm. In addition, she will try next week to raise $500 million through a global convertible bond offering. Under Ms.Lundberg, Elektrim let go long-time executives and brought in top executives from a subsidiary to head a massive cleanup of the firm's strategies and financial disclosure practices. In addition, the firm scrapped a deal that would have sold off its stake in its wireless venture, by far the most lucrative of its many businesses. Instead, Ms. Lundberg made a deal to increase the company's stake in the wireless firm, and began negociating to buy a consortium of local telephone firms in other Polish cities. Although it has made progress, Elektrim still faces certain challenges, as Poland haltingly moves toward opening the telephone market to competition.

France, Poland, Planning, Mass media industry, Investments, Privatization, Privatization (Business), Women executives, Convertible bonds, Vivendi S.A., Government monopolies, Elektrim SA, Lundberg, Barbara J.

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Dialing for dollars in Brazil's telephone privatization

Article Abstract:

Telebras will strengthen profits significantly once the Brazilian government completely privatizes the telephone giant, according to many analysts and money managers, Plans call for the government to divide Telebras into about 12 separate operations as early as Jul 1998. Demand is exploding for both cellular and conventional service, with a present list of 13 million potential customers. Telebras shares, traded as American depository receipts (ADRs) on the New York Stock Exchange, stood at $127.5625 at the Mar 6, 1998, close. By comparison, the stock had plunged from its peak of $167 in Jul 1997 to as low as $83 in fall 1997. Telebras stock could reach $170 in ADRs if the Brazilian Government achieves its goal of completing the privatization process by Jul 1998, according to a J.P. Morgan research report. The government holds a 21.3% stake, worth $25 billion, in outstanding Telebras shares and 50.04% of the company's voting shares.

Brazil, Company restructuring/company reorganization, Reorganization and restructuring, Telecomunicaoes Brasileiras S.A.

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On the Internet, Africa is far behind

Article Abstract:

Africa's lack of Internet connections concerns analysts, but the country's dearth of installed equipment could prove a blessing. Both academic and business observers warn that Africa must implement Internet connections rapidly, or the poorest continent will fall even farther out of step with the rest of the world. Conversely, Africa's lack of large copper installations gives it the ability to implement cutting-edge technology such as fiber-optic cable and wireless communications. The World Bank has a project underway to solicit donations to completely overhaul communications in Africa. Some African telecommunications officials are well aware of the benefits that the Internet could bring, but all fear the potential loss of income. Telecommunications companies in Africa are typically state-run and generate substantial profits.

Usage, Internet, Forecasts and trends, Industry trend, Information services, Growth, Africa

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