Interest In BaTelCo Sale Wanes

by Amanda Banks, Tax-News.com, London

27 February 2003

According to a report from the Nassau Guardian on Tuesday, interest in owning a 49% share of BaTelCo, the Bahamian state-owned telecommunications monopoly had waned considerably when bids closed on Monday, with just four companies interested in entering into a strategic partnership with the government.

Although eight companies submitted preliminary bids for BaTelCo, it was announced on Monday evening that the only remaining interested parties were: the BahamaTel Consortium, Blue Telecommunications (Bahamas) Ltd, Cable & Wireless PLC, and Trans World TeleCom Bahamas Ltd.

Although he explained to the local newspaper that this is only the beginning of the second round of evaluations, Minister of Works, Utilities, and Bahamasair, Bradley Roberts expressed disappointment at the muted response to the privatisation plans:

'I really thought there was going to be more. But the international telephone situation is very, very topsy-turvy at the moment. A lot of those companies are losing a lot of money,' he observed.

Local analysts have estimated the telecommunications company's worth at between $251 million and $560 million, according to the Nassau Guardian, and the business is still very much a going concern.

However, a strategic partner from the private sector would be able to provide capital development and technological guidance, and should allow the monopoly provider to increase its efficiency and the range of services offered, thereby boosting its earning power still further.

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