8. What percentage gave the winner group Telmex's control? Which was the initial stock scheme of the three buying companies?

We have to mention several things:  20.4 per cent was bought and that is why 1.7 billion dollars are mentioned, when the amount is 8.6 billion.  By the way, at that time Telecom Brazil was worth 800 million dollars, all of it was worth ten times less than Telmex.

When we took over the company we prepared our three-year plan, Telmex started to change.  There was a tremendous change not only in the company but also in all the market.  The share price rose.  It was the only emerging market stock; there were emerging markets’ papers, it even opened emerging markets to emerging markets’ companies; it opens equity markets for them, and they are still open today; the big stock exchanges, the big investors and above all, the big funds.

Grupo Carso bought a little more of that 20.4 per cent; it bought close to 5 per cent of the total and approximately two or three of the investors decided not to buy anymore, not to invest, not to support, because they were paying more than the share’s price at the Stock Exchange.  They said,  “I better buy at the Stock Exchange”.  Grupo Inbursa had to buy the half percent.  Then it bought approximately 5.8.  In net worth terms, we bought 3.5 per cent of the entire Telmex.

 First, the buying group was perfectly defined; at that time we controlled series AA, although there has been an evolution.  The French owned 5%, although they have already sold; SBC has been merging and has acquired, has taken over AT&T’s holdings; and I am told that Grupo Carso and Grupo Financiero Inbursa bought close to 5.8 and 4.6 the other Mexican investors.  The list was disseminated at the right time, it is of public domain and very well known.

What has happened? Obviously those that bought shares in 87, 88, 89 and 90 made very good money; doubled it versus 89, but if you compare it to December 87 they multiplied it by 12.  What is very clear is that in the privatization we bought at a 16.6 per cent higher price than its price on the day the bid was made, which was 18 per cent more expensive than in December 90.

There is suspicion, "no, they bought it very cheap and they did this and the other ", there are the figures and numbers do not lie.  There was a significant period of time during which, by the way, one of the big buyers of shares was the government itself; the government reappraised the value of the company by recalling its shares through several institutions, I say, this is how it was, so much so that a top officer of those companies when he won, called me to tell me that he was a very happy to own stocks, that he had been buying and had many Telmex shares; that is how I know that there were institutions that bought company shares, besides the fact that there could have been private investors.

Let’s see, of the 20.4, France Telecom bought 5 per cent, SBC, today AT&T 5 per cent, Grupo Carso and Grupo Inbursa 5.8, and other Mexican investors 4.6.  The list of the latter was disseminated at the right time; it is of public domain and is very well known.  We Mexicans bought 10.4 and foreigners 10.

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