Telmex increases Embratel bid

Despite earlier reports that it would not do so, Telefonos de Mexico (Telmex) has increased its offer for MCI (WorldCom)’s stake in Brazilian long-distance and international telecoms service provider Embratel in the face of increasing competition from the Calais consortium. Telmex has upped its bid from USD360 million to USD400 million, while Calais – which consists of Brazilian incumbents Tele Norte Leste Partipaçoes, Telefónica and Brasil Telecom Partipaçoes – has offered USD550 million, guaranteeing to pay USD360 million even if the deal is rejected by regulators. MCI has said that it has accepted the new bid from Telmex.