Brasília, March 22, 2004 (Agência Brasil) - The National Economic and Social Development Bank (BNDES) is willing to put up US$ 220 million to gain a share of control over part of Embratel, more specifically, the Star One controller unit, which operates the company's satellites, and Band X, used by the Armed Forces for strategic purposes. This declaration was made on Friday (19) by the president of the BNDES, Carlos Lessa, following a meeting with the leader of the government in the Senate, Aloízio Mercadante (PT-SP).

The American company, MCI, which currently controls Embratel and is undergoing bankruptcy proceedings, accepted a proposal to sell Embratel to the Mexican company, Telmex (owner of the Claro cellphone operator). However, there are two consortia interested in acquiring Embratel. The BNDES, according to its president, is inclined to participate in the purchase. "There is no concrete proposal. What exists are conversations with the two consortia," Lessa said.

The president of the BNDES affirmed that the bank is willing to participate in Embratel, regardless of who is the final buyer. Mercadante pointed out that the change of control of the company depends upon a decision by the American courts. He affirmed that, under any circumstance, the Brazilian State will not desist from obtaining control over Star One and Band X. "The government cannot forsake participation in the control of Embratel, because of the strategic importance of satellite communications," Mercadante stated.

Lessa and Mercadante assured that, whoever ends up buying Embratel, they will have to sit down and negotiate with the Brazilian government, since, in order to function, the company depends upon a license from the National Telecommunications Agency (Anatel) and the Ministry of Communications.

Translator: David Silberstein