ETB delays controlling stake sale again, shares fall

Colombian operator state-controlled operator Empresa de Telecomunicaciones de Bogota (ETB) has delayed again the sale of a controlling stake from 30 June to 26 July. ETB initially planned to hold the auction on 16 October 2009, but a Bogota administrative court temporarily suspended its search for a strategic investor, following ETB workers' union lawsuit to suspend the process. Following the sale delay announcement, ETB shares fell 3.7 percent on the stock exchange, Dow Jones reports. ETB has not yet released a list of registered bidders. However, Telefonica and Millicom International Cellular have already expressed interest in the acquisition. ETB seeks to sell a 36.6 percent stake to the new partner in a public auction, and will select the partner that offers the highest amount per share. The Bogota city council currently holds 86.59 percent of ETB, while minority shareholders own the remaining 13.41 percent. The city council plans to change its current shares into non-voting shares so the new partner will control the company. Additionally, ETB will sell other shares to the current minority holders at the same price, to avoid the dilution of their stakes.