Calais adds guarantee to bid for WorldCom's Embratel stake

New York, April 7 - Calais Participacoes SA added a guarantee to its $550 million bid for WorldCom Inc.'s Embratel Participacoes SA stake.

Sao Paulo, Brazil-based Calais said it will ensure WorldCom receives at least $360 million for its interest in Embratel even if Calais' acquisition does not receive necessary Brazilian regulatory approval.

The $360 million matches the bid from Telefonos de Mexico SA de CV.

"We are eliminating any downside risk to WorldCom by assuring that WorldCom would receive no less than the $360 million offered by Telmex in the worst case, and $550 million upon consummation of the sale to Calais," said Otavio Azevedo on behalf of Calais in a news release.

"Our offer is clearly higher and better than the Telmex offer. Now that we have enhanced our offer by removing the purported regulatory risk, how can WorldCom, its board of directors, its creditors and its advisors forego an additional $190 million in cash?"

Calais is owned by Geodex Communications SA and three Brazilian telecom companies: Brasil Telecom SA, Telemar Norte Leste SA and SP Telecomunicacoes Holding Ltd., a Brazilian unit of Telefonica.

Ashburn, Va.-based WorldCom, which does business as MCI, owns a 51.79% voting stake in the Embratel.

Its Chapter 11 case number is 02-13533.

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