Colombia Court Lets ETB Proceed With Search For Partner - CEO

A Colombian court authorized state-controlled telephone company Empresas de Telecomunicaciones de Bogota SA (ETB.BO), or ETB, to proceed with the search for a controlling partner, the company's top official said Thursday, sending shares up 10.3%.

The Colombian court turned down an order imposed on Sept. 22 to halt a process to seek a controlling partner, Fernando Panesso, ETB's CEO told Dow Jones Newswires on Thursday.

The order was part of a lawsuit lodged by the company's labor union, which fears massive layoffs if a private operator takes the company over.

The lawsuit isn't over though, Sol Marina de la Rosa, ETB's vice president for legal affairs, said.

Shares gained 10.3% to 1,070 Colombian pesos ($0.54) at 10.26 a.m. EST.

The Bogota city council now holds 86.59% of ETB, while minority shareholders have the remaining 13.41%, according to the company's Web site.

The city council plans to grant the majority of voting shares to a private operator, while keeping a 51% ownership in the company.

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