Companhia Riograndense de Telecomunicacoes (CRT) (merged with Brasil Telecom)

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Companhia Riograndesen de Telecommunicacoes (CRT) is the fixed phone company that provides local and long distance services in the State of Rio Grande do Sul. The company was one of the four Brazilian telecom companies that did not belong to the Telebras' system, which was privatized in July 1998. The other three independent telecom operating companies were the state-owned Companhia Telefonica de Ribeirao Preto (Ceterp), the municipality-owned Servicio Municipal de Comunicacoes Telefonicas de Londria-Parana (Sercomtel) and the privately owned Companhia de Telefones do Brazil Central (CTBC). CRT was partially privatized in late 1996 when a 35% stake of the preferred stock was sold for US$ 656 million to a consortium led by Telefonica International Holdings and integrated by Telefonica de Argentina, CTC (Chile), and Citicorp. The 35% stake privatized represented 13.45% of the total stock but it transferred the management control to the winning consortium. In a second transaction, a stake representing 50.12% on its voting capital (19.2% of equity) was sold through a competitive bidding process for $1.02 billion (R$1.18 billion) to a consortium led by Telefonica International of Spain. The winning bid represented a premium of 26.9 percent over the minimum price. By end of 2000, CRT was controlled by Brasil Telecom which was owned by a consortium controlled by Telecom Italia. Brasil telcom bought the controlling stake from Telefonica. According to Anatel, Telefonica should sell its participation in CRT because it already controlled Celular CRT in the area. CRT, responsible for 35% of the lines and the income of Brasil Telecom, was supposed to get 33% of the investments earmarked for 2001. None Commit. Inv. in Facilities is tracked because Private sponsors control CRT (own > 50% of voting capital).