Prepared by Jose Luis Suarez

The ETB awarded on September 9, the Consulting Contract to Dresdner Kleinwort Benson, that is said to have offered the lesser economic offer (success fee).

During the first week of August, five consortiums comprising some of the leading international investment banks, along with international law firms with expertise in telecommunications and international management consulting companies, offered for consideration their bids to the Telecommunications Company of Santafé de Bogotá (ETB).

Said bids were presented in compliance with the request for proposals carried out by the ETB with the purpose of choosing the Consulting Consortium, the body that will be in charge of structuring the sale of the shares that the Capital District owns in ETB.

The participation of the District in the ETB is of 99.99% of the shares. According to the results of the previous evaluations, four consortiums ( Credit Suisse First Boston, Rothschild, Merrill Lynch and Morgan Stanley Dean Witter ) qualified to the second and definite stage.
The consulting consortium must develop the necessary tasks in order to:

  • (i) sell the shares of the District in the ETB ;
  • (ii) sell the shares to the sector solidario in compliance with law ;
  • (iii) design the strategy for selling the percentage of the shares that are not sold initially ;
  • (iv) structure a sale process that maximizes the value of the ETB and
  • (v) provide a strategic operator to the ETB for which the Consulting Consortium must, among other tasks, promote the selling of the ETB through a road show.

According to what is established in the Terms of Reference, the consulting consortium will have a maximum term of seven months to carry out the duties imposed by the document.

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