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Colombia's ETB Sinks 27% After `Bubble Burst' on Bid to Find Stake Buyer
Empresa de Telecomunicaciones de Bogota SA, the state-run telecommunications provider serving Colombia’s capital, tumbled the most since its 2003 listing after failing to find a buyer for a stake in the company.
ETB, as the company is known, dropped 27 percent to 792 pesos, the lowest price since April 2009.
The phone service provider was unable to lure bidders for a proposed auction in which it sought to find a strategic investor, according to a statement posted on the website of the nation’s securities regulator. Investors were caught off-guard because they had been betting the company would find a buyer, said Jose Fernando Restrepo, head of research at Interbolsa SA, the country’s biggest brokerage.
“The bubble burst,” said Restrepo. “All these expectations went to zero.”
To contact the reporter on this story: Ben Bain in New York at bbain2@bloomberg.net
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