The tale of a $1.2 billion telecom killing; how AIG and Bell Canada reaped fivefold return in wary Korean market
Article Abstract:
In 1998, American International Group Inc. invested $106 mil and Bell Canada International Inc. invested $159 mil in Hansol M.com, formerly known as Hansol PCS. Bell Canada Chairman, Derek Burney, knew South Korean president, Kim Dae Jung. Mr. Kim was interested in demonstrating compliance with a condition on an IMF loan calling for opening his country to foreign investment. Hansol was the smallest of Korean cellular players, claiming 3 mil customers. Last February, anticipating a weakening tech market, BCI, AIG and Hansol agreed to sell the company. LG Telecom Co. was the first bidder, followed by Korea Telecom Corp. KT's offer was eventually accepted last July. BCI got $995 mil for its 24% stake; AIGm which held 16%, received $600 million.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 2000
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Qwest to sell a 10% stake to BellSouth
Article Abstract:
BellSouth Corp. has taken a 10% stake in Qwest Communications International Inc. as part of a wide-ranging joint venture. The Atlanta-based Baby Bell phone company wants to gain access to Qwest's long-distance telephone market without having to build its own nationwide network. However, the Baby Bells still need to gain permission from federal regulators to provide long-distance services within their home territories. The deal provides Qwest with another source of traffic to fill its new high-capacity network and gives it direct access to BellSouth's more than 1.5 million business customers in its nine-state territory.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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Mannesmann begins takeover defense; firm wants shareholders to rebuff Vodafone bid after board's rejection
Article Abstract:
Vodafone Airtouch PLC has offered 127.6 bil euros for Mannesmann's cellular phone business, or 251.7 euros per share.The Mannesmann board voted down the offer. Mannesman anticipates year 2000 earnings of 3.8 bil euros on revenues of 11.5 bil euros for its cellular business. Revenues of 3 bil euros are forecast for fixed line operations. Industry observers say a hostile takeover would need to be in the 265 euro to 270 euro per share range for the bid to succeed.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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