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Posted by
BradyNet
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Thursday, September 11, '03
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Nobrega told Reuters by telephone from New York that the new bond issue would close later on Thursday or Friday with a maximum yield of 12.5 percent and a referential coupon of 10.75 percent.
"We started out with a small amount of $500 million but we have received up until now up to $2 billion in offers. That is four times our expectations," he said, adding that the final amount should not exceed $1 billion.
A representative of ABN Amro told Reuters earlier on Thursday that the government planned to issue $500 million in bonds through ABN and Citigroup. Nobrega and his team have just completed a roadshow in Europe and the United States.
Venezuela, battling the sharpest recession in its history, recently bought back $1.5 billion in its foreign debt in an operation financed with a new issue of seven-year dollar-denominated bonds at par with a 5.375 coupon.
Nobrega said in August that the government planned to refinance up to $3 billion in its foreign debt this year and was evaluating various options as part of its campaign to ease a medium-term payments squeeze.
The finance minister said on Thursday that the government would "soon" announce another buyback or swap operation
http://www.bradynet.com/bbs/em/1003...
Amigo, how big is your techno sado-maso? Buying new machine for reasonable under 1000$ price will solve all your problems for next 5 years…or even may be 10 years given how long you use your old PC.
Pax, not all. In fact it has been boring fo me ( and to many colores, perhaps) not to find opportunities to buy . Last time I bought was,CESP 04 , may be in April/May 03 at about 55. Since then I have not run into an opportunity(Since I am a small investor I am comfortable with bonds at prices of <60 and preferably <<50. I thought about and still think about Arg sovereigns—look attractive pricewise, and I spent lots of time figuring out NPV recovery values and now and then I make postings about Argy sovereigns. If you have seen any hidden opportunities in low priced bonds, please post them. I will assure you that I will participate in the discussions( Note: I am not a trader or sophisticated investor— So I want low price, good security and a big profit potential).
Meanwhile, I find it imperative to learn about computers( more fruitful than political discussions, although I like them too). Perhaps my experience with Zone Alarm Firewall may alert some Colores to the need investigate before selecting a software hastily. (ZA is apparently very good in protecting a computer, but it has many frustrating side effects—experienced by a small but significant minority of users. Apparently Sygate works well(?) too, but without any negative side effects. There are many forums devoted to ZA problesms)
Will CESP have the money to redeem the o5 bonds at maturity? Any comments ?
From my point of view, the big risk in these times is to try to find value where there is none. Our business is not to buy bonds, but to buy good bonds in times when nobody wants them. In good times even bad credits might trade tight, However, they will trade wider than good credtis. We shouldn't fall under the temptation of switching out of good credits and into bad ones simply because they offer a yield pick up. We will have sufficient yield available from good credits when the next bust happens.
Sept. 11 (Bloomberg) -- Treasury Secretary John Snow endorsed
a $12.3 billion loan agreement between Argentina and the
International Monetary Fund that comes less than two years after
the country triggered the biggest default in history.
``The United States expects to support the program when it's
submitted to the IMF executive board for approval next week,''
Snow said in a statement.
The U.S. is the IMF's largest shareholder and the only one
with an effective veto over the fund's lending decisions. The
financing, to be released over three years, is aimed at helping
Argentina's recovery from a four-year recession and restoring
investors' confidence after the default on $95 billion of bonds in
late 2001.
Snow said pledges from the Argentine government to control
spending, establish a new tax-sharing structure and plan for an
independent central bank merited the aid.
``There's some significant structural reform in this
agreement,'' Snow told reporters, denying allegations that the
loan represented a reversal in U.S. policy because it didn't
guarantee enough new economic steps. ``We indicated to Argentina
that a bad agreement was worse than no agreement. There was a
minimum level of reforms that had to be met.''
Snow predicted if Argentina met its policy commitments and
restructured its debt, the loans would ``help lay the basis for
sustained growth.''
``There is no medium-term framework, which is critical for the renegotiation of the defaulted debt.
``It's a political triumph of the government. It comes at
the expense of generating the needed confidence in the economy to
attract investment.
``Economic reforms are lacking. Despite the economic crisis, politicians continue without the will to carry out reforms.
``Reaching a 3 percent primary surplus is not a problem for
Argentina. The challenge will be to keep expenditures from
growing as revenue increases.
``The agreement has improved market sentiment. But there is
still concern that this is just short term.
I might give it a whirl ... interesting thought.
Lots of shorts on this stock...
Copel looks fine as well pax!
PD:I can trade it trough CyberTrader
By SONJA RYST
Of DOW JONES NEWSWIRES
NEW YORK -- France Telecom SA's (FTE) plan to hand off its indirect stake in Telecom Argentina STET-France Telecom SA (TEO ) bodes well for Argentina's leading provider of fixed-line telephone services, which will benefit, market players say, from a more streamlined, dedicated ownership. France Telecom said Tuesday that it plans to sell 48% of its share in Nortel Inversora SA, the holding company which owns a majority of Telecom Argentina's share capital, to W de Argentina Inversiones SA for $125 million. This new buyer, a company owned by the local Werthein family and an affiliate of Argentine investment group Los W, also has an option to later purchase another 2% share in Nortel.
"It's positive given that you have control transferred to a local Argentine company that might have a much better handle on the company going forward," said Amit Bhartia, an equity portfolio manager at GMO Emerging Markets in California.
France Telecom is stepping aside for a local family that, starting in the 1990s, got involved in telecom and financial enterprises, including the takeover of Argentine insurance company Caja de Ahorro y Seguro.
There's a chance that the Werthein family will be involved only for the next few years. Telecom Argentina's other foreign parent, Telecom Italia SpA (TI), has its own option to buy a 50% stake from the new Argentine investor for $60 million after Dec. 31, 2008.
"The end game is that the shares being sold by France Telecom ultimately go to Telecom Italia," said Ignacio Ponce de Leon, a Latin America corporate debt analyst at JP Morgan in New York. "This means you get more clarity at the top - much more executive power."
That executive power has been split since Telecom Argentina's privatization in the 1990s. For more than a decade France Telecom and Telecom Italia have each held around 34% of voting rights and a 25.5% stake in Nortel Inversora.
But the two European telecoms have been at odds recently when it comes to the question of their commitment to Latin America. Telecom Italia, one of the world's largest fixed-line telecommunications operators, continues holding other major investments in Latin America such as the Chilean telecom Empresa Nacional de Telecomunicaciones SA (E.ENT), or Entel, which generates sales in excess of $500 million per year. In contrast the state-controlled fixed-line and mobile telephone operator France Telecom has recently decided to focus on France and the United Kingdom, and has been scaling back on global investments. In addition to this week's announcement on Telecom Argentina, France Telecom said it would relinquish its controlling stake of the Salvadoran operator CTE Salvador.
The loss of France Telecom won't likely hurt Telecom Argentina, said Marta Castelli, an analyst at Standard & Poor's Corp. in Buenos Aires. "They haven't received any money from France Telecom" since Telecom Argentina's privatization, she explained.
Meantime, few bond investors ever expected the foreign parent to put money on the table in support of Telecom Argentina's negotiations for new agreements on more than $3 billion of debt that it defaulted on during the Argentine crisis last year. In an indication that the market isn't particularly concerned about France Telecom's recent announcement, Telecom Argentina's rarely traded debt remains valued by traders at around of its 65% face value, where it was before the stake sale news.
"I don't think this can really modify the debt restructuring proposal" that Telecom Argentina has been working on with creditors in recent months, said Nicola Stock, the chairman of Task Force Argentina, an organization formed under the umbrella of the Italian Banking Association that represents retail investors from the country collectively holding about EUR680 million of Telecom Argentina's debt. Stock pointed out that Telecom Argentina's foreign parents haven't been directly involved in its debt restructuring deal, which is already in the final stages.
Not all investors were blase, however. France Telecom is unloading its stake to Werthein for a price that doesn't reflect market value, according to some equity analysts' projections. Telecom Argentina's shares tumbled 3.2% on the day to change hands at $6.00 apiece on the New York Stock Exchange Tuesday.
Company officials did not provide comment that was beyond the scope of previously published press releases. Representatives of the Werthein family did not immediately respond to requests for an interview.>
The peso rose 1.19 percent to 2.9 per dollar at 1145 a.m. in New York, its biggest gain since May 26.
Argentina's Merval stock index rose 0.8 percent at 11:45 a.m. New York time. The index jumped 4.9 percent yesterday, the biggest gain among the world's primary indexes, as investors anticipated an accord.
maybe they will succeed, maybe not, but i sure can see some big foreign players taking advantage of that and buying a lot....
pressure is mounting.....
and there are to many guys short in the stock....
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