This is the first time the owner of Corporación América speaks abouthis offer for the telco company. His partnership with the W and hisdifferences with Clarín. He ensures there is nothing wrong with havingthe SEC investigate about the transaction. In addition, he says theGovernment should take a more “drastic” action concerning the operation.
The emotion of having given the keys of the hospital that bears hisbrother’s name to Governor Daniel Scioli had already gone. Then, justbefore boarding his private helicopter, Eduardo Eurnekian emphaticallysaid, “The fact that the operation has the necessary blessings for meto get Telecom Italia is just nonsense. Theseare just inventions and stories fixed up by certain bidders. Certainmedia companies have echoed their vested interests and they believethey should be the ones to get the telco company.” This is the firsttime the executive refers to his interest in Telecom. Moreover, hiswords about the offer he made to the Italian owners of thetelecommunications company in Argentina was featured by disgust ratherthan enthusiasm in the light of the new challenge he could face withthis investment. Eurnekian’s answers during the interview he gave toFORTUNA came up and were related to the rumors that circulate in themarket. They allege his proposal would be endorsed by theAdministration of Cristina Fernández so that the partnership betweenEurnekian and Ernesto Gutiérrez would get 50% of SoforaTelecomunicaciones, the company currently owned by Telecom Italia. Withthe accusation made by certain bidders – i.e., the companies that havesubmitted economic proposals for this offer, which include Clarín,Pegasus, Román, Inversiones Cóndor and Genevieve Investment Fund –, theUS Securities and Exchange Commission (SEC) began to investigateTelecom Italia sale process in the country. Therefore, it has requestedinformation about the relationship between the Argentine executive andthe presidential couple. “Telecom Italia has enough power to make itsown decisions concerning who it will sell its company. Do you reallythink any Administration can certainly have an influence on them or onthe decision they have to make? There is a clear intent echoed bycertain sectors that publish certain information.”
FORTUNA: Does the investigation the SEC is now conducting make thenegotiation more complex? Part of the information requested from theUnited States refers to the relationship that exists between you andthe Kirchner couple.
EURNEKIAN: As far as the request from the SEC is concerned, there isnothing weird. They are not making any special request. What the SEC isdoing is merely an investigation of an affair based on a complaint. Andto do so they need information. They are simply defending the rights ofall the shareholders in Telecom. It is perfectly right for them to dothat, and it does not affect operations.
FORTUNA: Do you think some sectors are trying to harm you?
EURNEKIAN: Everybody knows Clarín has presented for the private callfor bids organized by Telecom. Yet, I wonder how serious or how fairlyClarín can give an opinion on this issue. They argue I have presentedthe lowest offer and I am accused of having done that. As the sellerthat is the role of the Italian telecommunications company.
They are the ones who should decline my offer and say it does not convince them.
It is said the group made by Eurnekian and Gutiérrez may have offeredUSD $500 million for the Italian equity share. They also say the moneycomes from certain disinvestment in some real estate business inArmenia, the sale of some duty-free shops, and the contribution fromMartín Garfunkel and other investors. On the other hand, the offerpresented by Carlos Joost Newbery amounted to USD 835 million, but itincludes the option to buy the Werthein’s equity share. On the otherhand, the offer made by Genevieve’s fund exceeded USD $900 million.According to certain sources that are familiar with the negotiation,the other parties involved made offers that range from the maximumfigures and the alleged lowest offer presented by Eurnekian.
According to the owner of AA2000, “there are many parties interested inTelecom Italia. The company did the right thing because it launched aprivate call for bids. On my part, Mr. Werthein is my partner, and inturn, he is also a partner in Telecom Sofora.
Then, I simply say that what I am doing is to have my partner, Mr. Werthein, participate in the offer.
What prevents me from doing that? What is the problem with doing that?Why do they forget to mention Mr. Werthein, who is willing to buy itwith me? Why does he have rights and why cannot I have rights? I do notunderstand it.”
Eurnekian lays the emphasis on his will and intent to make suchpurchase. And even though he adopts a more cautious style, the Wertheingroup suggested that the possibility of sharing the telephone companymanagement with the head of Corporación América would not beunpleasant. “The W holds Mr. Eurnekian and his group in high esteem. Weare pleased to see that Eduardo is already feeling as a partner inTelecom, and consequently as our partner.
We have to wait for the new development and see to whom Telecom Italiais sold when it is actually sold. Then, the time would come to talkwith the owners,” a top executive from the group ensured.
Following that line of thought, the good relationship between theexecutives is well known in the market. All in all, Adrián and GerardoWerthein must accept the candidate that Telecom Italia will eventuallyselect.
