Telefónica increases offer for CTC, extends deadline to Oct. 30

By Lisa Kerner

Charlotte, N.C., Oct. 13 - Telefónica SA upped its offer for all outstanding shares of Compania de Telecomunicaciones de Chile SA to 1,100 Chilean pesos per series A share from 1,000 Chilean pesos and to 990 Chilean pesos per series B share from 900 Chilean pesos.

In addition, the price per American Depositary Share will be increased to 4,400 Chilean pesos from 4,000 Chilean pesos, a Telefónica news release said.

Telefónica said it also extended the offer to 11 p.m. ET on Oct. 30 from Oct. 16.

The transaction will amount to 575.61 billion Chilean pesos, or approximately $942 million or about €692 million.

According to Telefónica, the transaction is conditioned on at least 75% of shareholders voting to approve a CTC bylaw amendment, eliminating a restriction that limits the percentage of CTC shares that may be owned or voted by a single shareholder to 45%.

CTC will hold an extraordinary shareholders meeting on Oct. 28.

On Sept. 17, Telefónica subsidiary Inversiones Telefónica Internacional Holding Ltda. began its tender offer for CTC simultaneously on the Stock Exchange of Santiago de Chile and on the New York Stock Exchange.

Based in Madrid, Telefónica provides fixed and mobile telephony services through telecommunications networks in Spain, Europe and Latin America. CTC is a Santiago, Chile, telecommunications company.

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