/raid1/www/Hosts/bankrupt/TCRLA_Public/020426.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, April 26, 2002, Vol. 3, Issue 82
Headlines
A R G E N T I N A
ARGENTINE BANKS: Central Bank Sees No Additional Suspension
CIESA: Fails to Make Payments, S&P Cuts Debenture Rating
HSBC: Chairman Comments On Government-Imposed Measures
LOMA NEGRA: To Default On Debts; Hires Morgan Stanley As Adviser
B E R M U D A
TYCO INTERNATIONAL: Plastics Unit May Not Be Sold After All
TYCO INTERNATIONAL: Plans IPO for Financial Services Division
B R A Z I L
CESP: Sells Bonds In Global Markets To Pay Debt
EMBRATEL: Disappointing 1Q02 Result Hurts Share Value
GLOBO CABO: Shares Up On Brazilian Currency Gains
VESPER: QSI Losses Total $119M for QUALCOMM Inc. 2QFY02 Results
C H I L E
WILLIAMS COMMUNICATIONS: Ch.11 Won't Affect Minority Ownership
C O L O M B I A
ANDERSEN: Colombian Arm To Merge With Deloitte
M E X I C O
GRUPO BITAL: To Sell 12% Stake In Camesa Thru Public Offering
CINTRA: To Select Sale Agent In July
IMPSA: Extends Exchange Offer for 9 «% Notes
MAXCOM TELECOMUNICACIONES: Series B Senior Note Exchange Expires
SANLUIS CORPORACION: Wheaton River To Buy Industrial Plant
VITRO: Boosts Efforts To Ease Debt Burden This Year
- - - - - - - - - -
=================
A R G E N T I N A
=================
ARGENTINE BANKS: Central Bank Sees No Additional Suspension
-----------------------------------------------------------
Argentina's central bank says any further suspension of bank
operations is unnecessary, says central bank chairman Mario
Blejer. Blejer's remark came in contrast to analysts'
speculations that the central bank is likely to close down more
banks due to liquidity problems.
Analysts' expectations were spurred by the closure of the
Argentine subsidiary of Canada's Scotiabank, Scotiabank Quilmes,
due to lack of liquidity. The central bank had propped up
Scotiabank Quilmes and other banks with liquidity for some time
but finally it decided to leave the bank's fate in the hands of
its Canadian parent. So far, the parent company has refused to
inject any additional liquidity. Scotiabank has been granted 30
days to come up with a rescue plan for its local subsidiary.
The analysts saw central bank's change of policy as a message to
foreign banks that they have to save their own flagging banks and
that they cannot count indefinitely on the central bank as a last
resort lender.
CIESA: Fails to Make Payments, S&P Cuts Debenture Rating
--------------------------------------------------------
International credit rating agency Standard & Poor's (S&P)
downgraded the ratings of Compania de Inversiones de Energia
(Ciesa) after the Argentine energy holding company failed to meet
principal and interest payments on an issue due April 22, 2002.
According to a Business News Americas report, S&P cut Ciesa's
US$220-million debenture to `raD' (Default) from `raCC.'
The missed payments came after a sharp reduction in Ciesa's
financial flexibility caused by the current lack of liquidity of
the local financial system and the closure of capitals markets to
Argentine companies as a consequence of measures taken by the
government during 1Q02.
Now, Ciesa, which owns 55.3 percent of natural gas transport
company TGS, is left without adequate liquidity due to its
aggressive dividends policy, S&P said.
Ciesa, a joint venture of Argentine oil and natural gas giant
Perez Companc SA and the collapsed Enron Corp., said it has begun
debt restructuring talks with all its creditors.
HSBC: Chairman Comments On Government-Imposed Measures
------------------------------------------------------
HSBC Hong Kong chairman David Eldon appealed to the Argentinean
Government saying that it should not force the bank's hand by
setting unacceptable conditions for continuing to operate in the
recession-plagued country, reports the South China Morning Post.
"I would hope that no measures were taken that would be
precipitous - which would force us to close a branch or walk away
from something. That is not the sort of thing we do," Eldon said.
Eldeon said HSBC would make no "knee-jerk" reaction on its
Argentine operations, however, he skirted the question of whether
HSBC would add to the US$1.46 billion provisioning charge already
made by the group to cover mounting losses incurred by its
Argentine subsidiary.
Analysts have estimated that further charges against this year's
profits of between US$500 million to US$600 million may be
required to write off the group's Argentine exposure - a likely
scenario with both the Government and many corporate borrowers
now technically bankrupt.
The group would "not be inclined" to put any more money into
Argentina "at this stage," Eldon added.
CONTACT: HSBC HOLDINGS PLC
10 Lower Thames St.
London EC3R 6AE, United Kingdom
Phone: +44-020-7260-0500
Fax: +44-020-7260-0501
Home Page: http://www.hsbc.com
Contacts:
Sir John R. H. Bond, Group Chairman / Exec. Dir.
Sir Brian Moffat, Deputy Chairman / Sr. Non-Exec. Dir.
Keith R. Whitson, Group Chief Executive
LOMA NEGRA: To Default On Debts; Hires Morgan Stanley As Adviser
----------------------------------------------------------------
Loma Negra, Argentina's largest cement maker, said it would
default on its debt and informed Argentine securities regulators
that it was analyzing its liquidity options, sources of financing
and operations, reports EFE. The Company has hired U.S.-based
investment bank Morgan Stanley to advise on the debt
restructuring.
Loma Negra attributed its decision to default on its debt to the
currency devaluation sparked by the country's four-year
recession.
At the end of 2001, the cement maker's debt stood at US$430
million, nearly 40 percent of which has been converted into
pesos, while debts owed to foreign banks accounted for 60
percent.
CONTACT:
LOMA NEGRA
Bouchard 680 (1106)
Federal capital
Argentina
Phone: (54-11) 4319-3000
E-mail: loma.internet@lomanegra.com.ar
Home Page: http://www.lomanegra.com.ar
Contact:
Alejandro Bengolea, Managing Director
MORGAN STANLEY, DEAN WITTER & COMPANY
1585 Broadway
New York, New York 10036
United States
Phone: +1 212 761-4000
Home Page http://www.msdw.com
=============
B E R M U D A
=============
TYCO INTERNATIONAL: Plastics Unit May Not Be Sold After All
-----------------------------------------------------------
Tyco International is considering suspending the auction of its
plastics operation because it hasn't been able to find a buyer to
pay its asking price. The situation fueled speculation of a
partial reversal of Tyco's plan to split into four parts.
According to an article released by The New York Times, the sale
of Tyco's plastics had attracted interest from teams of buyout
groups, including Bain Capital; Thomas H. Lee Partners of Boston
and the Blackstone Group of New York; the Carlyle Group of
Washington, and Madison Dearborn Partners of Chicago; and Clayton
Dubilier & Rice Inc. of New York and the Texas Pacific Group in
San Francisco.
However, none offered more than US$2.5 billion in the first round
of bidding, the executives said. Tyco has been asking for US$3
billion to US$4 billion, they said. A second round of bidding has
been held up because Tyco has not delivered an audit of the unit,
which was supposed to be delivered about a month ago.
Based in Bermuda and has headquarters in Exeter, Tyco's shares
have plunged this year on investor concerns about its accounting
practices and cash position.
The disclosure that its two top executives have sold more than
US$500 million in stock over the last three years while telling
investors that they rarely sell shares contributed to the
deterioration of the value of its stock as well.
Since the beginning of the year, Tyco has fallen 54 percent,
erasing US$63 billion in shareholder value.
CONTACT:
TYCO INTERNATIONAL LTD. (Corporate Office)
The Zurich Centre, Second Floor
90 Pitts Bay Road
Pembroke HM 08, Bermuda
Phone: 441-292-8674
Contact:
L. Dennis Kozlowski, Chairman, President, and CEO
Jerry R. Boggess, President, Tyco Fire and Security
Services
Mark H. Swartz, EVP and CFO
Headquarters
Tyco International (U.S.) Inc.
One Tyco Park
Exeter, NH 03833
Phone: 603-778-9700
Home Page: http://www.tyco.com
TYCO INTERNATIONAL: Plans IPO for Financial Services Division
-------------------------------------------------------------
Tyco International is planning an initial public offering of its
CIT financial services arm in an attempt to lighten its
overwhelming debt load.
Citing people familiar with the Company's thinking, the Financial
Times reports that Tyco has revived plans to sell CIT shares to
new investors and pay off Tyco debt with the proceeds. This would
replace a plan to spin off CIT directly to Tyco shareholders
without raising any cash.
However, the same sources warned that no final decisions had been
taken and Tyco executives could yet decide on an alternative
course of action.
An IPO of CIT, which analysts expect would value the unit at US$6
billion to US$7 billion, would help to solve Tyco's debt
problems.
However, the report suggests that the Company would also need to
reassure credit rating agencies that the subsidiary had been
fully separated from its parent.
In February, the uncertainty about Tyco's financial position
drove international credit ratings agency Standard & Poor's to
cut CIT's credit ratings, effectively shutting the Company out of
the commercial paper markets.
S&P has indicated that it will restore CIT's ratings once the
leasing group has been completely separated from its parent. CIT
needs to be able to issue commercial paper to finance its leasing
obligations.
===========
B R A Z I L
===========
CESP: Sells Bonds In Global Markets To Pay Debt
-----------------------------------------------
Cia. Energetica de Sao Paulo (Cesp), Brazil's third-largest power
generator, raised US$150 million through the sale of variable-
coupon bonds in global markets to pay debt expiring in June,
relates Bloomberg. Investors had expected Cesp to sell as much as
US$200 million in bonds.
The three-year bonds pay a 9-percent annual coupon for the first
year, and 11.5 percent thereafter. The bonds were sold at 99.875
percent of face value, to yield an average 10.63 percent to
maturity.
A 1997 sale of US$300 million in 10-year bonds had a put option
due on June 26, giving investors the chance to sell the bonds
back this year. If investors exercise the put option, they will
yield an average 9.13 percent a year. Cesp has the right to buy
the bond back from investors on May 9, 2003, at 101 percent of
face value, giving a yield of 10.11 percent.
Cesp, which generates and sells electricity in the state of Sao
Paulo, also plans to sell BRL450 million (US$196 million) in
four-year local debt to finish building the Engenheiro Sergio
Motta hydroelectric plant, reveals Bloomberg, citing a Gazeta
Mercantil report.
Government-controlled Cesp ended 2001 with net losses of BRL813.3
million, up by 196 percent from the BRL414.3 million recorded in
the previous year. Operating cost also widened to BRL1.49 billion
from BRL739.5 million. Results were partly hurt by the energy-
rationing program introduced in June last year to help replenish
depleted reservoir levels.
In addition, the Company's bottom line was also negatively
impacted by its dollar-denominated debt, which totaled BRL6.53
billion at the end of 2001.
CONTACT: CESP-COMPANHIA ENERGETICA DE SAO PAULO
Rua da Consolacao, 1.875
CEP 01301 -100 Sao Paulo, Brazil
Phone: +55-11-234-6322
Fax: +55-11-287-0871
Home Page: http://www.cesp.com.br/
Contact:
Mauro G. Jardim Arce, Chairman
Ruy M. Altenfelder Silva, Vice Chairman
Vicente Kazuhiro Okazaki, Finance Director
EMBRATEL: Disappointing 1Q02 Result Hurts Share Value
-----------------------------------------------------
Embratel Participacoes SA's preferred shares bounced 3.1 percent
to BRL6.30, after tumbling 20 percent in the past two days to its
lowest level ever, says Bloomberg.
Carolina Gava, an analyst at BES Securities, downgraded shares of
Brazil's largest long-distance telephone company to "sell" from
"neutral" after Embratel said its first-quarter loss widened 8
percent to BRL36.4 million (US$15.6 million) from a loss of
BRL33.7 million in the year-ago quarter.
Merrill Lynch and UBS Warburg earlier slashed their
recommendation on Embratel citing the Brazilian telecom's dismal
first-quarter results.
Merrill Lynch cuts its recommendation to reduce/sell from
neutral, while UBS downgraded it to sell from buy.
To see financial statements:
http://bankrupt.com/misc/Embratel.txt
CONTACT: EMBRATEL PARTICIPACOES S.A.
Investor Relations
Silvia Pereira
Tel. (55 21) 2519-9662
Fax: (55 21) 2519-6388
Email: Silvia.Pereira@embratel.com.br
invest@embratel.com.br
or
Press Relations:
Helena Duncan/Mariana Palmeira
Tel: (55 21) 2519-3653/3654
Fax: (55 21) 2519-8010
Email: hduncan@embratel.com.br
mpalm@embratel.com.br
GLOBO CABO: Shares Up On Brazilian Currency Gains
-------------------------------------------------
Shares of Brazil's biggest cable television provider Globo Cabo
gained 2.9 percent to BRL0.35 after the Brazilian currency rose
for the first day in four, gaining 0.2 percent to BRL2.3570 per
U.S. dollar.
Globo Cabo has debts totaling BRL1.82 billion (US$773.3 million),
about 57 percent of which is denominated in dollars.
"Because Globo Cabo's costs are in dollars and its revenue are in
reais, the stock is very sensitive to currency values," said
Graham Makohoniuk, who helps manage about US$800 million in Latin
America equities with Globalvest Management Co. in St. Thomas,
Virgin Islands.
Globo Cabo recently announced a recapitalization plan that
primarily aims to raise BRL1 billion in an upcoming equity
offering. With the new capital increase, the Company expects to
reduce its liabilities to about BRL800 million.
To see financial statements:
http://bankrupt.com/misc/globo_cabo.pdf
CONTACT: GLOBO CABO
Investor Relations:
Luis Henrique Martinez, +5511-5186-2684,
lmartinez@globocabo.com.br
Marcio Minoru, +5511-5186-2811,
minoru@globocabo.com.br
VARIG: May Take In Sacked Workers From Rio Sul
----------------------------------------------
Poor financial results brought about by a depressed Brazilian
economy, increased fuel costs due to the depreciation of the real
currency and higher leasing costs, drove Rio Sul to lay off about
10 percent of its workforce of 2,200.
Rio Sul, a unit of Brazil's leading airline Varig, ended 2001
with a loss of BRL71 million (US$30 million), compared with a
profit of BRL31.3 million (US$13 million) the previous year.
The Company also attributed the layoffs to a reduction of its
fleet. By July 1, Rio Sul will have grounded its remaining five
30-passenger Brasilia-type aircraft.
However, according to a Rio Sul spokesman, some of the
maintenance workers may be re-employed in other parts of the
Varig group.
Varig, which recorded a net loss of BRL481 million (US$207
million) in 2001, expects to post losses for the fifth straight
year in 2002.
Varig's debt totals US$900 million.
CONTACT: VARIG (Viacao Aerea Rio-Grandense, S.A.)
Rua 18 de Novembro No. 800, Sao Joao
90240-040 Porto Alegre,
Rio Grande do Sul, Brazil
Phone: (51) 358-7039/7040
(51) 358-7010/7042
Fax: +55-51-358-7001
Home Page: www.varig.com.br/english/
Contacts:
Dorival Ramos Schultz, EVP Finance and CFO
E-mail: dorival.schultz@varig.com.br
Investor Relations:
Av. Almirante Silvio de Noronha,
n 365-Bloco "B" - s/458 / Centro
Rio de Janeiro, Brazil
VESPER: QSI Losses Total $119M for QUALCOMM Inc. 2QFY02 Results
---------------------------------------------------------------
QUALCOMM Incorporated announced Wednesday its second quarter
fiscal 2002 results. Pro forma revenues were $659 million
compared to $717 million in the year ago quarter and $693 million
in the first quarter of fiscal 2002. Pro forma earnings per share
were $0.20 in the second quarter of fiscal 2002 compared to $0.26
per share in the year ago quarter and $0.23 per share in the
first quarter of fiscal 2002(1) (see pro forma adjustment
schedule). GAAP reported revenues for the second quarter of
fiscal 2002 were $696 million compared to $717 million in the
year ago quarter, a decrease of 3 percent. Reported income before
taxes was $69 million in the second quarter of fiscal 2002
compared to $270 million in the year ago quarter.
"We're excited that third generation CDMA networks are steadily
growing in number. Fourteen wireless operators have launched
commercial 3G CDMA systems in six countries with over 7 million
reported subscribers," said Dr. Irwin M. Jacobs, chairman and CEO
of QUALCOMM. "We congratulate these operators on their launch of
commercial CDMA2000 1X systems including SK Telecom, KT Freetel
and LG Telecom in South Korea; Verizon Wireless, Leap Wireless,
Monet Mobile and Metro Mobile in the United States; Bell Mobility
in Canada; Zapp Mobile in Romania; KDDI in Japan; Centennial in
Puerto Rico; and Telesp and Telefonica Cellular in Brazil. In
addition, SK Telecom in South Korea officially launched the
world's first commercial 3G CDMA2000 1xEV-DO network, NTT DoCoMo
launched its WCDMA network in Japan, and China Unicom deployed
its CDMA network throughout China.
"In the second quarter of fiscal 2002, we shipped approximately
14 million MSM phone chips, over half of which were 3G CDMA2000
1X. We also held successful demonstrations in Europe and the U.S.
of our GSM 1X technology, live wireless calls using our
WCDMA/UMTS chipset, and the BREW platform operating over a GPRS
network. As we look ahead to the second half of our fiscal year,
we expect further positive momentum as additional 3G CDMA
networks are deployed with a wide variety of color-screen
handsets, many utilizing multimedia and position location
capabilities as well as exciting new BREW-enabled applications,"
said Dr. Jacobs.
Note: (1) The primary items excluded from pro forma earnings are
amortization of goodwill, consolidated losses related to the
Vesper Companies in Brazil, and fluctuations in the value of our
Leap Wireless warrants. Pro forma earnings include the Company's
core operating businesses, QUALCOMM CDMA Technologies (QCT),
QUALCOMM Technology Licensing (QTL) and QUALCOMM Wireless &
Internet (QWI). Reported earnings are presented in accordance
with Generally Accepted Accounting Principles (GAAP) and include
the QUALCOMM Strategic Initiatives (QSI) segment and other items
excluded from pro forma.
Pro forma revenues decreased to $659 million in the second
quarter of fiscal 2002 from $717 million in the year ago quarter,
and decreased 5 percent from $693 million in the first quarter of
fiscal 2002. As announced on February 25, 2002, the decrease in
revenues compared to the year ago quarter is primarily related to
lower royalties and unit shipments of MSM chips as well as lower
revenues from our business with Globalstar. The year ago period
reflected higher-than-normal royalties due to a record number of
phone shipments in the December 2000 quarter. The decrease in
revenues in the second quarter of fiscal 2002 was partially
offset by higher software development and services revenues
related to our Binary Runtime Environment for Wireless(TM)
(BREW(TM)) application development platform and QChat(TM)
product, and the effect of higher average selling prices of our
3G CDMA2000 1X MSM phone chips.
Pro forma gross margin for the second quarter of fiscal 2002 was
67 percent compared to 64 percent in the year ago quarter and 66
percent in the first quarter of fiscal 2002. The increase in pro
forma gross margin resulted from improved gross margins in the
QUALCOMM CDMA Technologies (QCT) business segment, primarily
resulting from higher average selling prices of 3G CDMA2000 1X
MSM phone chips.
Pro forma R&D expenses were $114 million in the second quarter of
fiscal 2002 compared to $105 million in the year ago quarter and
$104 million in the first quarter of fiscal 2002. The increase in
R&D expenses compared to the year ago quarter was primarily due
to QCT product initiatives to support high-speed wireless
Internet access and multi-mode, multi-band, multi-network
chipsets including cdmaOne(TM), CDMA2000 1X/1xEV-DO, GSM/GPRS,
WCDMA and position location technologies. The increase in pro
forma R&D expenses from the first quarter of fiscal 2002 was
primarily due to the resumption of employee payroll taxes in the
new calendar year.
Pro forma selling, general and administrative expenses were $97
million in the second quarter of fiscal 2002 compared to $86
million in the year ago quarter and $91 million in the first
quarter of fiscal 2002. The increase in SG&A expense compared to
the year ago quarter was primarily due to increased head count
and related expenses for our support and marketing efforts
related to the BREW application development platform and
expansion of the QCT customer base. The increase in pro forma
selling, general and administrative expenses from the first
quarter of fiscal 2002 was primarily due to payroll taxes and
seasonal factors including public company and tradeshow marketing
expenses.
Pro forma interest income on corporate cash and marketable
securities was $23 million for the second quarter of fiscal 2002
compared to $40 million in the year ago quarter and $25 million
in the first quarter of fiscal 2002. The decline in interest
income as compared to the year ago quarter was a result of lower
interest rates on cash and marketable securities.
The Company's pro forma annual effective income tax rate for
fiscal 2002 is estimated to be 35 percent compared to the 34
percent estimated in the first quarter of fiscal 2002. This
increase is attributed to total lower expected R&D tax credits
for the year. As a result, the effective tax rate in the second
quarter of fiscal 2002 is 36 percent.
QUALCOMM Strategic Initiatives (Excluded from Pro Forma Results)
The QUALCOMM Strategic Initiatives (QSI) segment includes our
strategic investments and related income and expenses from non-
core businesses including the Vesper Companies. QSI revenues were
$37 million in the second quarter of fiscal 2002 primarily
related to the consolidation of the Vesper Companies. QSI losses
before taxes for the second quarter of fiscal 2002 were $119
million compared to earnings before taxes of $13 million in the
year ago quarter. The increase in losses compared to the year ago
quarter was primarily due to the consolidated results of the
Vesper Companies ($45 million loss net of minority interest.) In
addition, QSI recorded a $49 million unrealized loss on
derivative instruments resulting from a decrease in the fair
market value of our Leap Wireless warrants, compared to a $12
million gain in the year ago period. QSI also recorded a $42
million decrease in interest income and realized gains on
marketable securities compared to the year ago quarter, offset by
a $28 million decrease in losses related to equity method
investments.
Business Outlook
The following statements are forward-looking and actual results
may differ materially. Please refer to the description of certain
risk factors and QUALCOMM's quarterly reports on file with the
Securities and Exchange Commission (SEC) for a more complete
description of risks. We will disseminate our quarterly business
outlook, based on current expectations, in conjunction with our
quarterly earnings release and conference call. We will not
provide further material guidance on analysts' financial models
beyond the information provided in our quarterly earnings release
and conference call.
Outlook information is presented on a pro forma basis and
excludes the QSI segment.
Third Quarter Fiscal 2002
-- Based on the current business outlook, we expect third fiscal
quarter pro forma revenues to increase by approximately 3-6
percent compared to the second quarter of fiscal 2002. We expect
third fiscal quarter pro forma earnings per share to be
approximately $0.21-$0.23. This estimate assumes shipments of
approximately 15-16 million MSM phone chips during the quarter,
including approximately 10 million 3G CDMA2000 1X MSM phone
chips.
Fiscal 2002
-- Based on the current business outlook, we expect revenue
growth for fiscal 2002 to be approximately 4-8 percent and pro
forma earnings per share to be in the range of $0.90-$0.95. This
estimate assumes growth of the CDMA2000 1X market in the second
half of fiscal 2002, and is based on the sale of 80-85 million
CDMA phones in calendar 2002 with a 5-10 percent annual decrease
in average selling prices of CDMA phones, upon which royalties
are calculated.
Cash Flow
QUALCOMM's cash, cash equivalents and marketable securities,
excluding QSI, totaled approximately $2.5 billion at the end of
the second quarter of fiscal 2002. The following table presents
selected cash flow information, including cash equivalents and
marketable securities, for the second quarter and first six
months of fiscal 2002 (in millions):
Second Quarter Six Months
Selected Cash Flow Information Fiscal 2002 Fiscal 2002
-----------------------------------------------------------------
Earnings before taxes, depreciation,
amortization and asset impairments $ 277 $ 588
Working capital changes and taxes paid 41 7
Additional share capital 34 52
-----------------------------------------------------------------
Net cash inflows 352 647
Capital expenditures (26) (57)
-----------------------------------------------------------------
Net cash provided 326 590
Increase (decrease) in fair value
of marketable securities (11) (17)
Transfers to QSI (160) (412)
-----------------------------------------------------------------
Net increase in cash, cash equivalents and marketable securities
of QUALCOMM,
excluding QSI $ 155 $ 161
===============================
Business Segment Highlights
QUALCOMM Technology Licensing (QTL)
-- Signed a total of five royalty-bearing CDMA license
agreements during the second quarter of fiscal 2002, including
two new licensees and three extensions to existing license
agreements.
-- Announced that patent offices in Europe, South Korea and
Japan upheld the validity of four key patents covering important
aspects of CDMA systems. The confirmation of these inventions
further validates the value of QUALCOMM's patent portfolio in
Europe, South Korea and Japan.
QUALCOMM CDMA Technologies (QCT)
-- Shipped approximately 14 million MSM phone chips to customers
worldwide during the second quarter of fiscal 2002 compared to
approximately 16 million units in the year ago quarter and
approximately 15 million units in the first quarter of fiscal
2002.
-- Shipped approximately 8 million 3G CDMA2000 1X MSM phone
chips during the second quarter of fiscal 2002 for a cumulative
total of approximately 20 million units.
-- Shipped CSM infrastructure chips to support approximately two
and a half million equivalent voice channels compared to
approximately one million equivalent voice channels in the year
ago period. The increase is primarily attributable to the growth
in CDMA2000 1X deployments.
-- Announced complete radioOne(TM) solutions including CDMA2000
1X and WCDMA/UMTS multimode chipset solutions, which incorporate
GSM/GPRS modes.
-- Demonstrated WCDMA/UMTS wireless voice calls and world's
first wireless GSM voice calls using our UMTS/GSM single-chip
multimode solution in a small form factor handset.
-- Shipped samples on-time of the world's first radioOne (Zero-
IF) technology, and conducted live voice and data calls using our
MSM6000 and MSM6050 chipsets.
QUALCOMM Wireless & Internet Group (QWI)
QUALCOMM Internet Services (QIS)
-- Announced the licensing of our QChat voice-over Internet
protocol (VoIP) push-to-talk technology for 3G CDMA networks to
Nextel, the world's leading provider of push-to-talk services,
which it markets under the Direct Connect brand.
-- Signed a definitive agreement with Verizon Wireless, the
largest wireless service provider in the U.S., for the support of
our BREW platform. Verizon Wireless announced its plans to
commercially launch BREW applications nationwide in late May
2002, and began its rollout with the successful launch of BREW
services in San Diego on March 18, 2002.
-- Announced the signing of a definitive agreement with KDDI,
Japan's second largest wireless service provider, for the
commercial launch of BREW-enabled services. KDDI began providing
handsets, pre-loaded with applications on the BREW platform in
March 2002.
-- Announced the successful combination of the TTPCom Wireless
Game Engine and the BREW platform in a GSM/GPRS handset, and
demonstrated wireless downloads of BREW applications to the
handset at the 3GSM World Congress in Cannes, France.
-- Announced an agreement with Comverse, the leading supplier of
software and systems enabling network-based multimedia-enhanced
communications services, to develop BREW-enabled multimodal
enhanced services for all types of third generation wireless
networks.
-- Announced an agreement with IBM to extend IBM WebSphere
infrastructure software via the BREW platform, opening WebSphere
to millions of wireless devices worldwide. In addition, IBM's
WebSphere Studio Device Developer, a new development environment
to create, test and deploy e-business applications, will include
a BREW plug-in.
-- Announced the signing of a non-binding memoranda of
understanding (MOU) with U.S. Cellular, the nation's eighth
largest wireless service provider, to offer products and services
based on the BREW platform.
-- Announced that Disney Interactive, Sony Online Entertainment,
Inc., THQ, Inc., Monkeystone Games, nGame, NuvoStudios,
CINEMAELECTRIC, Inc., Com2us Corp., and Mobliss Inc. signed
agreements to develop applications for the BREW platform.
QUALCOMM Wireless Business Solutions (QWBS)
-- Shipped approximately 9,500 OmniTRACS(R) units and related
products in the second quarter of fiscal 2002, compared to
approximately 9,400 units during the year ago quarter and the
first quarter of fiscal 2002.
-- Announced the commercial launch of FleetAdvisor(R), which has
been successfully converted to the Windows(R) CE platform.
FleetAdvisor is a powerful transportation logistics management
system comprised of full-function on-board computing, vehicle
tracking, highly integrated back-office software and real-time
wireless communications.
-- Announced the continued addition of new truckload and private
fleet carriers and the renewal of a service contract with Swift
Transportation, the nation's largest publicly held truckload
carrier, for the OmniTRACS mobile communications system.
-- Announced that Vos Logistics, a leading European truckload
carrier based in the Netherlands, has signed a three-year service
agreement to transfer from its existing supplier to QUALCOMM.
Under the terms of the agreement, QUALCOMM Wireless Business
Solutions Europe will provide robust, reliable satellite
communications services to Vos Logistics' nearly 2,000-truckload
fleet over the EutelTRACS(TM) network.
-- Announced an agreement with United Rentals, Inc., the largest
equipment rental company in North America, to deploy OmniTRACS
and OmniExpress(R) mobile communications system units on its
fleet of up to 10,000 delivery, service, sales and highway
technology vehicles.
-- Announced with Wynne Systems, the leader in business software
for the equipment rental industry, the launch of the integrated
RentalMan(R) Dispatch Module with OmniTRACS and OmniExpress
wireless fleet management systems.
QUALCOMM Digital Media (QDM)
-- Announced with Teranex, Inc., the availability of a complete
digital cinema compression solution based on QUALCOMM's
ABSolute(TM) cinema-quality compression algorithm, providing a
real-time, high quality, end-to-end encoding/mastering solution
to the digital cinema market.
QUALCOMM Strategic Initiatives (QSI)
-- Telefonica Moviles, one of the world's leading wireless
companies, announced the execution of a Letter of Intent to
acquire a controlling interest in Pegaso Telecomunicaciones, S.A.
de C.V., a wireless operator in Mexico. Telefonica Moviles would
leverage its international experience and is expected to combine
Telefonica Moviles' existing Mexican operations with Pegaso's
into a nationwide CDMA network in
Mexico.
-- Brazilian operator Vesper increased its sales of portable
CDMA phones, selling an average of 1,000 units per day.
QUALCOMM Incorporated ( www.qualcomm.com) is a leader in
developing and delivering innovative digital wireless
communications products and services based on the Company's CDMA
digital technology. Headquartered in San Diego, Calif., QUALCOMM
is included in the S&P 500 Index and traded on The Nasdaq Stock
Market(R) under the ticker symbol QCOM.
To see financial statements:
http://bankrupt.com/misc/Qualcomm.txt
CONTACT: QUALCOMM Incorporated
Julie Cunningham, Sr. Vice President, Investor
Relations
858/658-4224, 858/651-9303 (fax)
juliec@qualcomm.com
=========
C H I L E
=========
WILLIAMS COMMUNICATIONS: Ch.11 Won't Affect Minority Ownership
--------------------------------------------------------------
The recent bankruptcy filing of U.S.-based Williams
Communications Group will not affect the group's minority
involvement in Chilean competitive local exchange carrier
Manquehue Net and Argentine carrier of carriers Silica Networks.
A spokesperson from the Company explained that the bankruptcy
filing represents primarily a financial action by the company and
should not affect operations, including relationships with
clients and suppliers.
Williams holds minority stakes in joint ventures with the UK's
National Grid in Manquehue Net with 16.5 percent and Silica
Networks with 19.9 percent.
In November 2001, National Grid wrote off its Latin American
investments for US$411 million and announced it was looking into
a buyer for Silica with other shareholders.
In February, Williams Communications VP and CEO of international
operations Miller Williams said that Silica shareholders were
simply maintaining the company's existing infrastructure and
confirmed that William's had not written off its investment in
Silica.
Williams Communications Group voluntarily filed for Chapter 11
bankruptcy protection this week in a bid to restructure its debt
and cut it by about US$6 billion.
CONTACT:
WILLIAMS COMMUNICATIONS
One Technology Center
Tulsa, OK 74103
Phone: 918-547-6000
Fax: 918-547-7134
Home Page: http://www.williamscommunications.com
Contact:
Howard E. Janzen, Chairman, President and CEO
Scott E. Schubert, EVP and CFO
Investor Relations
Phone: 1.866.468.6924
E-mail: wcg.ir@wcg.com
===============
C O L O M B I A
===============
ANDERSEN: Colombian Arm To Merge With Deloitte
----------------------------------------------
The Colombian division of the embattled accounting firm Andersen
will merge with consultancy firm Deloitte, in a process which is
expected to conclude in three years' time, says a report released
by Portafolio.
In Colombia, Andersen has 500 clients and posted local turnover
of COP45 billion. Deloitte, on the other hand, has just over 200
clients and posted local turnover of COP17 billion.
The merger will see the two firms' 400 and 200 employees joining
forces, creating the biggest consultancy group in Colombia.
Andersen, one of the world's top five accounting firms, is
currently facing charges for improperly destroying documents
about bankrupt Enron Corp.
CONTACT: ANDERSEN (Colombia)
BOGOTA
Carrera 7
Numero 74-09 P.2 al P.8
Santafe de Bogot , D.C.
Colombia
Apartado Aereo 75874
Santafe de Bogota, D.C.
Colombia
Tel: 57 1 546 1810
Fax: 57 1 217 8088
CALI
Edificio Banco del Comercio
Piso 26
Cali, Colombia
Apartado Aereo 4445
Cali, Colombia
Tel: 57 2 883 7027
Fax: 57 2 883 4836
MEDELLIN
Centro Colseguros
Calle 53, No. 45-112
Oficina 1301
Medellin, Colombia
Apartado Aereo 444
Medellin, Colombia
Tel: 57 4 251 4829
Fax: 57 4 251 9489
Email: colombia@andersen.com
colombia.careers@andersen.com
===========
M E X I C O
===========
GRUPO BITAL: To Sell 12% Stake In Camesa Thru Public Offering
-------------------------------------------------------------
Grupo Financiero Bital SA announced that a public auction for its
12 percent stake in local mining and metals concern Grupo
Industrial Camesa SA will be held in the next few days.
Bital, which operates Mexico's third-largest branch network, said
the move forms part of the group's capitalization plan and its
divestment of assets not related to its core financial services
business.
The group, in a regulatory filing, disclosed that its brokerage
unit Casa de Bolsa Bital will be in charge of the placement.
Camesa's minority shareholders will be eligible to participate in
the offering.
Bital is one of the few banks under control of Mexican
shareholders. However, its current US$400-million capitalization
process will dramatically alter the balance of power on the
board, as Spain's Banco Santander Central Hispano SA (SCH) and
Dutch giant ING Group (ING) will have significant minority stakes
in the Company.
CONTACT: GRUPO FINANCIERO BITAL
Paseo De La Reforma
No. 243, Cuauhtemoc,
06500, Mexico ,D.F.
Phone: 57.21.52.86
Fax: 57.21.57.83
Home Page: www.bital.com.mx
Contact:
Investor Relations
Act. Ricardo Garza Galindo Salazar
Phone: 57.21.26.40
Fax:57.21.26.26
E-mail: ricaggs@bital.com.mx
CINTRA: To Select Sale Agent In July
------------------------------------
Government-owned airline holding company Cintra SA is expected to
decide on a sale agent sometime in July to coordinate the
privatization of its two airlines, AeroMexico and Mexicana de
Aviacion.
According to a report by Dow Jones, a sale advisory contract with
Merrill Lynch & Co. has already expired in December.
Merrill Lynch, Societe Generale, Goldman Sachs Group Inc. and
Citigroup Inc.'s Salomon Smith Barney have expressed initial
interest in submitting sale proposals, said Roberto Barrera,
spokesman for federal deposit insurance agency IPAB.
IPAB would like to have AeroMexico and Mexicana ready for sale in
about three months.
"If market conditions allow, we could start with due diligence by
that time," Mr. Barrera said.
Although both carriers are members of global airline alliances,
local regulations limit direct foreign ownership of domestic
airlines to 25 percent. Foreign companies, however, can have up
to 49 percent in each carrier with voting restrictions.
The federal government controls more than 65 percent of Cintra,
mostly through IPAB, which assumed its 50.5 percent stake from
debt held by banks that were bailed out by the government after
the December 1994 peso crisis.
IPAB had sought to sell Cintra as a single company to maximize
returns. However, the plan was ditched by antitrust regulators
seeking to break up the local monopoly.
CONTACTS:
MERRILL LYNCH & CO., INC.
World Financial Center,
North Tower, 250 Vesey St.
New York, NY 10281
Phone: 212-449-1000
Toll Free: 800-637-7455
Home Page: http://www.merrilllynch.com
Contact:
David H. Komansky, Chairman and CEO
E. Stanley O'Neal, President, COO, and Director
Thomas H. Patrick, EVP and CFO
SOCIETE GENERALE
29, Boulevard Haussmann
75009 Paris, France
Phone: +33-1-42-14-20-00
Fax: +33-1-42-14-54-51
E-mail: investor.relations@socgen.com
Home Page: http://www.socgen.com
Contacts:
Pierre-Guillaume de Pompignan, Investor Relations Officer
Carole Noel, Investor Relations Assistant
E-mail: investor.relations@socgen.com
SALOMON SMITH BARNEY HOLDINGS INC.
388 Greenwich St.
New York, NY 10013
Phone: 212-816-6000
Fax: 212-793-9086
Home Page: http://www.smithbarney.com
Contact:
Michael A. Carpenter, Chairman and CEO
Michael J. Day, EVP and Controller
THE GOLDMAN SACHS GROUP, INC.
New York Headquarters
Goldman Sachs & Co.
85 Broad Street
New York, NY 10004
United States of America
Phone: 1-212-902-1000
Fax: 212-902-3000
Home Page: http://www.gs.com
Contacts:
Henry M. Paulson Jr., Chairman and CEO
John A. Thain, President, Co-COO, and Director
John L. Thornton, President, Co-COO, and Director
David A. Viniar, Executive Vice President and CFO
GOLDMAN SACHS MXICO CASA DE BOLSA, S.A. DE C.V.
Torre Optima Building
Paseo de las Palmas 405
18th Floor
Col. Lomas de Chapultepec
Mxico 11000, D.F.
Phone: 52-55-5540-8100
IMPSA: Extends Exchange Offer for 9 «% Notes
--------------------------------------------
Industrias Metalurgicas Pescarmona S.A.I.C. y F. announced the
extension of its pending exchange offer (the "Offer") for all
U.S. $137.6 million of its outstanding 9-1/2% Notes due May 31,
2002 (144A - CUSIP No. 45647WAB9, and Reg S - ISIN No.
US45647XAB73) (the "Notes").
The expiration date for the Offer has been extended from 5:00
p.m., New York City time, on April 24, 2002, to 5:00 p.m., New
York City time, on May 8, 2002.
The Company also announced that as of 5:00 p.m., New York City
time, on April 24, 2002, it had received tenders from holders of
U.S. $86.4 million in aggregate principal amount of the
outstanding Notes, representing approximately 62.8% of the
outstanding Notes.
The complete terms of the Offer are contained in the Offering
Memorandum dated March 14, 2002 and the Supplements thereto dated
April 11, 2002 and April 24, 2002. The Supplement dated April 24,
2002 includes a discussion of certain recent economic
developments in Argentina and contains supplemental financial
information of the Company.
Banc of America Securities LLC is the exclusive dealer manager
for the Offer. D.F. King & Co., Inc. is the information agent and
Deutsche Bank is the exchange agent. Information concerning the
terms and conditions of the Offer may be obtained by calling D.F.
King at (800) 735-3591 or Banc of America Securities at (1) 888-
292-0070 (U.S. toll-free) or (1) 704-388-4807 (from outside the
U.S.).
The Exchange Notes will not be registered under the United States
Securities Act of 1933, as amended, and will only be offered in
the U.S. to qualified institutional buyers and accredited
investors in private transactions, and outside the U.S. to
persons other than U.S. persons in offshore transactions. The
Exchange Notes will be authorized by the Argentine Comision
Nacional de Valores for their public offering in Argentina.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of,
the Exchange Notes in any state of the United States in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any
such state.
CONTACT: BANC OF AMERICA SECURITIES
Phone: +1-888-292-0070 (U.S. toll-free)
+1-704-388-4807 (from outside the U.S.)
MAXCOM TELECOMUNICACIONES: Series B Senior Note Exchange Expires
----------------------------------------------------------------
Maxcom Telecomunicaciones, S.A. de C.V. announced the expiration
of the exchange offer for its Series B Senior Notes. As of the
close of business yesterday, The Bank of New York, the exchange
agent, received tenders representing 94.3% of the total notes
outstanding. Maxcom has advised The Bank of New York that it has
accepted for exchange all the tendered notes. All withdrawal
rights have terminated.
The Company offered to exchange any and all of its 13-3/4% Series
B Senior Notes due 2007 for up to $175 million aggregate
principal amount of New Senior Notes and up to an aggregate of
28,050,000 ordinary participation certificates (CPOs), each
representing one share of Series N2 Convertible Preferred Stock
with limited voting rights.
The $175 million New Senior Notes will bear 0% (zero) interest
through March 1, 2006 and will accrue interest thereafter at an
annual interest rate of 10%. Interest will be payable in cash on
September 1st, 2006 and March 1st, 2007. The Series N2
Convertible Preferred Stock, which would represent 15.9% of the
total capital stock of Maxcom, will have an initial liquidation
preference of U.S.$0.4927 per share, and limited voting rights.
Maxcom expects to consummate the exchange promptly, upon receipt
of certain pending Mexican regulatory approvals.
Maxcom Telecomunicaciones, S.A. de C.V, headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to small- and medium-sized businesses and residential customers
in the Mexican territory. Maxcom launched commercial operations
in May 1999 and is currently offering local, long distance and
data services in Mexico City and the City of Puebla.
CONTACT: Maxcom Telecomunicaciones, S.A. De C.V.
Jose-Antonio Solbes
Tel. +5255-5147-1125
Email: investor.relations@maxcom.com
Lucia Domville of
Citigate Dewe Rogerson
Tel. +1-212-419-4166
Email: lucia.domville@citigatedr-ny.com
SANLUIS CORPORACION: Wheaton River To Buy Industrial Plant
----------------------------------------------------------
SANLUIS Corporacion, S.A. de C.V., the Mexican industrial company
that manufactures autoparts and mines gold and silver, announced
that it has reached an agreement for the sale of its mining
business, headed by its subsidiary Minas Luismin, S.A. de C.V.
The acquirer is Wheaton River Minerals Ltd, a Canadian company
listed in the Toronto Stock Exchange (WRM: TSE).
The sale of SANLUIS' mining business was approved by its Board of
Directors and its Executive Committee and responds to SANLUIS
Corporacion's strategy of concentrating on its autoparts
business, which represents 88% of its income, and of directing
all its efforts towards the strengthening of SANLUIS Rassini's
preeminent position in the auto industry market and in order to
guarantee its customers' complete satisfaction.
Completion of the sale is subject to a number of conditions and
consents, including Wheaton River obtaining all regulatory
approvals and the raising of financing necessary for the
transaction.
The price agreed for closing the transaction is comprised of
US$75 million in cash (some of which may be deferred), of which
US$20 million will be used to repay Luismin's existing debt.
Additionally, SANLUIS will receive up to US$15 million of Wheaton
River common shares some of which are subject to a premium and a
lock up period of two years.
The transaction is expected to close in about the middle of June
2002.
Following the closing Antonio Madero, the Chairman and CEO of
SANLUIS and Eduardo Luna, the President of Luismin will join the
Board of Directors of Wheaton.
SANLUIS has been advised by Rothschild Inc. since 1999.
CONTACT:
SANLUIS Corporacion
Hector Amador
Email: hamador@sanluiscorp.com.mx
N M ROTHSCHILD & SONS LIMITED
New Court, St. Swithin's Lane
London EC4P 4DU, United Kingdom
Phone: +44-20-7280-5000
Fax: +44-20-7929-1643
E-mail: infouk@rothschildco.uk
Home Page: http://www.nmrothschild.com
Contacts:
Sir Evelyn de Rothschild, Chairman
Andrew Didham, Executive Director, Finance Director Holdings
N M ROTHSCHILD & SONS (MEXICO) SA DE CV
Campos Eliseos 345-8ų Piso
CP 11550 Mexico, DF Mexico
Phone: 52 5 327 1450
Fax: 52 5 327 1485
Home Page: www.rothschild.com.mx
VITRO: Boosts Efforts To Ease Debt Burden This Year
---------------------------------------------------
In an effort to slash debt by between US$330 million and US$350
million this year, Vitro SA revealed plans to use the US$150
million from the sale of its 51 percent stake in home-appliances
business Vitromatic, US$100 million in internally generated
resources, and income from further divestitures.
At the end of this year's first quarter, the Mexican glassmaker's
total outstanding debt stood at US$1.56 billion.
According to Jose Domene, Vitro's chief operating officer, Vitro
expects to generate annual sales of US$2.5 billion and earnings
before interest, taxes, depreciation and amortization, or EBITDA,
of around US$460 million after the sale of Vitromatic to joint-
venture partner Whirlpool Corp. The sale is expected to close in
the second quarter.
Vitro posted EBITDA of US$513 million in 2001 on record sales of
US$3 billion.
Vitro, S.A. de C.V., through its subsidiary companies, is a major
participant in four distinct businesses: flat glass, glass
containers, glassware and household products. Vitro's
subsidiaries serve multiple product markets, including
construction and automotive glass, wine, liquor, cosmetics,
pharmaceutical, food and beverage glass containers, fiberglass,
plastic and aluminum containers, glassware for commercial,
industrial and consumer uses and household appliances. Founded in
1909, Monterrey, Mexico-based Vitro has joint ventures with major
world-class manufacturers that provide its subsidiaries with
access to international markets, distribution channels and state-
of-the-art technology. Vitro's subsidiaries do business
throughout the Americas and Europe, with facilities and
distribution centers in seven countries, and export products to
more than 70 countries.
To see financial statements: http://bankrupt.com/misc/Vitro.txt
CONTACT: Vitro S.A. de C.V.
Investor Relations:
Beatriz Martinez
011 (52 81) 8863-1258
bemartinez@vitro.com
or
Vitro, S. A. de C.V.
Media Relations:
Albert Chico
011 (52 81) 8863-1335
achico@vitro.com
or
Breakstone & Ruth International
U.S. agency:
Luca Biondolillo / Susan Borinelli
646/536-7012 / 7018
Lbiondolillo@breakstoneruth.com
Sborinelli@breakstoneruth.com
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Ma. Cristina Canson, Editors.
Copyright 2002. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
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or balance thereof are $25 each. For subscription information,
contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *