BNDES seeks USD160 million compensation from America Movil

Brazil’s national development bank BNDES has asked the government to act as an intermediary for its discussions with America Movil over USD160 million it claims the wireless holding company owes it. BNDES is claiming the money is owed from a transaction dating back to the 1998 privatisation of Telebras, when it purchased preferred shares in wireless operators Telet and Americacel before they were acquired by America Movil. BDNES kept tagalong rights allowing it to sell the shares at the same price as the controlling shareholders in the event of an acquisition. However, when America Movil took control of the operators BDNES claims it was not properly compensated.