Printer Friendly

BELL ATLANTIC COMPLETES INITIAL PURCHASE OF 23 PERCENT OF IUSACELL

 MEXICO CITY and ARLINGTON, Va., Dec. 1 /PRNewswire/ -- Bell Atlantic (NYSE: BEL) announced today that it has completed its acquisition of an initial 23 percent interest in Grupo Iusacell, S.A. de C.V., consisting of more than 20.5 million shares of newly issued Iusacell stock, which Bell Atlantic purchased for $520 million.
 Bell Atlantic said it plans to invest up to a total of $1.04 billion in Iusacell.
 Bell Atlantic will purchase the balance of its Iusacell stake directly from the Peralta family, which controls the Mexican telecommunications company. The Peralta family will retain voting control over Iusacell, consistent with Mexican law. Under the terms of their agreement, Bell Atlantic and Iusacell jointly will make key business decisions.
 Proceeds of Bell Atlantic's initial investment in Iusacell will immediately begin funding the growth and further development of Iusacell's telecommunications business and repay debt.
 Initial financing of Bell Atlantic's investment will be with short-term debt. This debt will ultimately be paid down through a combination of internally generated funds and equity financing as appropriate.
 "This investment offers significant growth potential for Bell Atlantic and substantially increases our presence in global communications markets and our cellular holdings," said Lawrence T. Babbio Jr., chairman and CEO, Bell Atlantic Enterprises International.
 "On behalf of Iusacell, I am very pleased to have completed this milestone and I appreciate the dedications of the Iusacell and Bell Atlantic team to this effort," said Carlos Peralta, vice chairman and CEO of Iusacell.
 Bell Atlantic is the largest cellular carrier on the East Coast of the United States and one of the largest in the country with 35 million POPS in Washington, D.C. and in 15 states, including Arizona, New Mexico and Texas. The mobile subsidiary of Bell Atlantic has been a leader in developing technologies that support personal communications, mobile data, and other advanced wireless services.
 Bell Atlantic Corporation, based in Philadelphia, is the parent company of New Jersey Bell, Bell of Pennsylvania, Diamond State Telephone (Delaware) and the Chesapeake and Potomac Telephone Companies of Maryland, Virginia, West Virginia and Washington, D.C., companies which provide a full array of local exchange telecommunications services in the mid-Atlantic region.
 Bell Atlantic is also the parent of companies that provide software, systems integration, hardware and software services support and financial services throughout the United States and internationally. In addition, Bell Atlantic International develops full network capabilities throughout the world and owns an interest in Telecom Corporation of New Zealand.
 Iusacell, based in Mexico City, began commercial radiotelephony service in 1957. Iusacell's founder and chairman, Alejo Peralta, and his son, Carlos, provided through the company the first cellular service in Mexico in 1989. Iusacell is one of several entities owned by the Peralta family, which also owns Grupo Iusa, one of the largest


industrial groups in Mexico, with interests in construction, automotive equipment, and financial services.
 Iusa was founded in 1939 by Alejo Peralta, who has been chairman since 1947, and the family continues to own all of Iusa. The Peralta family's commercial holdings currently employ more than 17,000 people in Mexico.
 /delval/
 -0- 12/1/93
 /CONTACT: Nancy Stern of Bell Atlantic International, 703-351-4595, or Teresa Bermea Ortiz of Iusacell, 525-524-6631/
 (BEL)


CO: Bell Atlantic, Grupo Iusacell, S.A. de C.V. ST: Pennsylvania, Virginia IN: TLS SU: TNM

MJ-LJ -- PH015 -- 9254 12/01/93 12:07 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 1, 1993
Words:562
Previous Article:COLORADO STUDENT OBLIGATION BOND AUTHORITY 1993 I-A/I-B 'AAA'/'A' BY FITCH -- FITCH FINANCIAL WIRE --
Next Article:/C O R R E C T I O N -- Infotainment World/
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters