Colombian Phone Co ETB Sets Criteria To Select Partner

Colombian state-controlled telecommunications company Empresa de Telecomunicaciones de Bogota SA (ETB.BO), or ETB, set the criteria to select a partner to inject fresh capital in return for as much as 49.9% of the company.

The new partner will have to operate at least 1.5 million fixed lines or 5 million mobile lines, and at least 100,000 internet connections, ETB said in a filing to the local regulator.

The company expects its future partner to have booked at least $1 billion in total revenues in the last fiscal period. The company didn't say when it plans to pick the partner.

ETB needs capital to face rising competition from Spain's Telefonica SA (TEF) and Mexico's Telefonos de Mexico SA (TMX).

ETB's revenues from fixed-lines and long distance calls are dwindling as the three firms are now offering fixed-lines, internet connection and cable TV bundled together, a service known as triple-play.

ETB followed the recommendation of investment banking unit of Banco Santander SA (STD).

ETB is controlled by the Bogota city council, which holds 88.5%, while minority shareholders have the remaining 11.5%.

Shares of ETB were up 2.4% on Tuesday at COP930 at 10.36 a.m. EDT, while the IGBC stock index was down 0.3%.

-By Inti Landauro, Dow Jones Newswires; 57-1-610 70 44 Ext. 1131; [e-mail]