Latin CEO: Executive Strategies for the Americas articles from January 2000

Latin CEO: Executive Strategies for the Americas archives from January 2000

Jumping borders. (Letter from the Editor).
January 1, 2000... What impressis one most about the growth of Mexico-based Grupo Modelo in the last few years is how much of that growth has come from exports. Prior to the Mexican peso crisis of 1995, less than 10 percent of the company's revenues came from...

A trade dispute between Argentina and Brazil became more tense as both central banks announced they would no longer guarantee trade transactions between the two countries. (Portfolio: Regional).
January 1, 2000... A trade dispute between Argentina and Brazil became more tense as both central banks announced they would no longer guarantee trade transactions between the two countries, requiring instead a deposit equal to 100 percent of the value of the...

In another chapter of their trade dispute, Brazil and Argentina agreed to hold off tariffs on auto trading through the end of February. (Portfolio: Regional).
January 1, 2000... In another chapter of their trade dispute, Brazil and Argentina agreed to hold off tariffs on auto trading through the end of February while they work to balance the trade of vehicles and parts between the two countries.

Telefonica's Internet subsidiary Terra Networks SA opened trading in Madrid and New York. (Portfolio: Regional).
January 1, 2000... Telefonica's Internet subsidiary Terra Networks SA opened trading in Madrid and New York, nearly tripling in value on the first day's trading and giving the company a market value of US$11.2 billion. The stock debuted at US$13.41, rose as...

Latin American stock markets beat the S&P (through Dec. 1, 199).
January 1, 2000... Latin American stock markets beat the S&P (through Dec. 1, 199) US S&P 14.0% Mexico 62.3% Brazil 26.0% Argentina 25.9% Unemployment in Latin America and the Caribbean is projected to reach 9.3 percent for 1999,...

The government vowed not to bail out financially troubled Aerolineas Argentinas. (Portfolio: Argentina).
January 1, 2000... The government vowed not to bail out financially troubled Aerolineas Argentinas should it approach bankruptcy; no buyers have made offers on the airline.

US-based Goldman Sachs. (Portfolio: Argentina).
January 1, 2000... US-based Goldman Sachs bought an 18-percent stake in media firm Grupo Clarin for US$500 million.

The first foreign company to trade on the Buenos Aires stock exchange. (Portfolio: Argentina).
January 1, 2000... The first foreign company to trade on the Buenos Aires stock exchange, Spanish oil giant Repsol YPF, debuted at US$21.80.

Perez Companc SA. (Portfolio: Argentina).
January 1, 2000... Perez Companc SA's stock tumbled 17 percent after the company asked non-family shareholders to dilute their voting rights, making clear that the company will not join the merger trend gripping other oil companies. The proposal would raise the...

British gas company BG PLC bought Tesoro Petroleum. (Portfolio: Bolivia).
January 1, 2000... British gas company BG PLC bought Tesoro Petroleum's natural gas exploration unit for US$100 million.

Brazil's state-owned Petroleo Brasileiro (Petrobras) and Argentina's Perez Companc offered US$102 million for two government-owned oil refineries. (Portfolio: Bolivia).
January 1, 2000... Brazil's state-owned Petroleo Brasileiro (Petrobras) and Argentina's Perez Companc offered US$102 million for two government-owned oil refineries. The venture, which Petrobras would own 70 percent of, is that company's first outside Brazil.

MCI. (Portfolio: Brazil).
January 1, 2000... Due to its merger with MCI, Sprint was ordered to sell its stake in long-distance carrier Intelig Telecommunicacoes and refrain from sharing information with Intelig rival Embratel Participacoes, which MCI controls.

Tele Centro Sul Participacoes bought Sao Paulo phone company Centrais Telefonicas de Ribeirao Preto SA. (Portfolio: Brazil).
January 1, 2000... Tele Centro Sul Participacoes bought Sao Paulo phone company Centrais Telefonicas de Ribeirao Preto SA, and also announced plans to spend US$1.03 billion to build a long distance network and bolster high-speed data capacity.

Brazilian stocks. (Portfolio: Brazil).
January 1, 2000... Individual foreign investors will no longer pay a 10-percent capital gains tax on Brazilian stocks.

The federal government purchased 66 percent of the voting shares in Banco do Estado de Sao Paulo (Banespa) from Sao Paulo state for US$1.02 billion. (Portfolio: Brazil).
January 1, 2000... The federal government purchased 66 percent of the voting shares in Banco do Estado de Sao Paulo (Banespa) from Sao Paulo state for US$1.02 billion, and will take over the bank as a precursor to its privatization.

Duke Energy offered nearly US$300 million to purchase the rest of Brazilian power generator Geracao de Energia Eletrica Paranapanema. (Portfolio: Brazil).
January 1, 2000... Duke Energy offered nearly US$300 million to purchase the rest of Brazilian power generator Geracao de Energia Eletrica Paranapanema, one of three electric utilities serving Sao Paulo.

1999's inflation rate hit a record low of 2.3 percent. (Portfolio: Chile).
January 1, 2000... 1999's inflation rate hit a record low of 2.3 percent, down from 4.7 percent in 1998.

A joint venture between Electricidade de Portugal and UK's Thames Water, known as Andes Sur. (Portfolio: Chile).
January 1, 2000... A joint venture between Electricidade de Portugal and UK's Thames Water, known as Andes Sur, agreed to pay US$112.5 million to control 45 percent of Essel, Chile's former state-ran sanitation group.

Bancolombia began the sale of up to US$206 million in new shares. (Portfolio: Colombia).
January 1, 2000... Bancolombia began the sale of up to US$206 million in new shares. The bank plans to use the money to cover loans and expand.

A trade surplus. (Portfolio: Columbia).
January 1, 2000... A trade surplus of nearly US$1.2 billion was the first in seven years.

The US Federal Aviation Administration. (Portfolio: Columbia).
January 1, 2000... The US Federal Aviation Administration upgraded Colombia's aviation ranking to a Category 1; "open skies" talks begin soon.

Ecopetrol invited foreign oil companies to bid for exploration rights in 13 new areas. (Portfolio: Columbia).
January 1, 2000... Ecopetrol invited foreign oil companies to bid for exploration rights in 13 new areas, expected to contain 4.5 billion barrels of crude.

French-Spanish tobacco company Altadis. (Portfolio: Cuba).
January 1, 2000... French-Spanish tobacco company Altadis will buy 50 percent of state cigar exporter La Corporacion Habanos for around US$500 million.

Abandoning a US$200 million plan to expand production at Cuba's idled Cienfuegos refinery. (Portfolio: Cuba).
January 1, 2000... Abandoning a US$200 million plan to expand production at Cuba's idled Cienfuegos refinery, Venezuela opted for a joint venture with state oil company Cupel. Together, they plan to begin refining 70,000 barrels a day at the refinery, allowing...

A state of emergency could not stop the slide of the sucre, which lost value almost daily. (Portfolio: Ecuador).
January 1, 2000... A state of emergency could not stop the slide of the sucre, which lost value almost daily In early January the government announced plans to dollarize the economy in an effort to stabilize it.

Expansion of its main oil pipeline, expected to be complete in March or April. (Portfolio: Ecuador).
January 1, 2000... Expansion of its main oil pipeline, expected to be complete in March or April, will allow Petroecuador to increase crude production by 11 percent this year, boosting total output of the country's top export to 99 million barrels.

Grupo Televisa SA decided against a joint venture for an Internet portal and announced plans to debut one of its own. (Portfolio: Mexico).
January 1, 2000... Grupo Televisa SA decided against a joint venture for an Internet portal and announced plans to debut one of its own. The company's parent Grupo Televicentro also announced it would have a secondary stock offering.

Telefonos de Mexico. (Portfolio: Mexico).
January 1, 2000... Telefonos de Mexico requested permission to charge by the minute for residential calls.

Five-star hotel chain Camino Real. (Portfolio: Mexico).
January 1, 2000... Five-star hotel chain Camino Real, seized by the government along with failing owner Banco Union SA, went on the government's auction block.

The Communications and Transport secretariat grounded Transportes Aeros Ejecutivos (TAESA). (Portfolio: Mexico).
January 1, 2000... The Communications and Transport secretariat grounded Transportes Aeros Ejecutivos (TAESA), leading the company to cut 700 jobs while it teetered on the edge of bankruptcy TAESA has lost more than US$22 million since being forced to suspend...

A group led by Goldman Sachs won from the government. (Portfolio: Mexico).
January 1, 2000... A group led by Goldman Sachs won from the government the right to manage US$817.5 million in Banco Union loans.

In their first announced joint venture outside of Japan. (Portfolio: Mexico).
January 1, 2000... In their first announced joint venture outside of Japan, Nissan Motors and Renault will invest US$400 million in Mexican operations over the next seven years. Nissan will build Renault cars and trucks in Mexico.

Mexican Postal Service. (Portfolio: Mexico).
January 1, 2000... Package-delivery service Mexpost and all of its assets, currently a unit of the Mexican Postal Service, was put up for public sale, with bids due March 23.

Pemex oil company. (Portfolio: Mexico).
January 1, 2000... Pemex oil company announced it will invest US$550 million to add more than 1,240 miles of pipeline to its network, including US$59 million in measurement and control systems.

Mexico signed the first free trade agreement between a Latin American country and the European Union. (Portfolio: Mexico).
January 1, 2000... Mexico signed the first free trade agreement between a Latin American country and the European Union; it still must be ratified by member states. Tariffs will become nearly equal to those paid by Mexico's NAFTA partners, with whom Mexico now...

Standard & Poor. (Portfolio: Panama).
January 1, 2000... Standard & Poor's rated the country's long-term debt as "stable to negative," reflecting a government deficit, inability to reduce debt and uncertainty about the future of US$1.3 billion in privatization revenue.

Banco General purchased Banco Comercial. (Portfolio: Panama).
January 1, 2000... Banco General purchased Banco Comercial (Bancomer), creating Central America's largest bank, with assets of around US$2.3 billion and control of 13 percent of Panama's domestic loans and deposits.

Aeroperu. (Portfolio: Peru).
January 1, 2000... Creditors voted to liquidate Aeroperu, which halted operations last March with a debt of US$170 million.

Telerep. (Portfolio: Peru).
January 1, 2000... More than 1,900 villages in the Andes mountains and the Amazon jungle will receive phone service from Telerep, which paid US$10.9 million for a 20-year government concession.

A trade pact with Mexico. (Portfolio: Uruguay).
January 1, 2000... A trade pact with Mexico gives tariff exemptions to more than 87 percent of trade between the two countries.

Financial institutions. (Portfolio: Venezuela).
January 1, 2000... Financial institutions were ordered to deposit into a special account half of all profits from the second half of 1999, as well as half of all earlier profits not paid out in dividends. The requirement is aimed at forcing banks to pay out...

McDonalds. (Portfolio: Venezuela).
January 1, 2000... McDonalds announced plans to spend US$50 million to build 20 new restaurants in Venezuela, predicting sales increases of 15 percent for 1999.

Perception of Corruption.
January 1, 2000... Perception of Corruption The following represents the relative perception of corruption in various countries, as seen by local business people, risk analysts and the general public. The index score was devised by a "survey of surveys"...

Private Consumption as % of GDP.
January 1, 2000... GDP is made up of several factors: investment, net exports, public consumption and private consumption. Generally, the higher the percentage of private consumption (everything from toothbrushes to food), the smaller the role that...

Money flees Venezuela. (Bulletin Board).
January 1, 2000... Amount of capital withdrawn from Venezuela since Hugo Chavez took office: US$4 billion Source: New York Times

Expensive Shopping. (Bulletin Board).
January 1, 2000... Expensive Shopping. * Worldwide rank (out of 212) of rent on Latin America's most expensive shopping streets: US$/ Rank City Street Sq. Ft/Year 17 Buenos...

Capital flows south. (Bulletin Board).
January 1, 2000... * Capital flow into Latin America in 1999: US$57 billion 1998: US$86 billion 1997: US$107 billion (a record year) Source: Interamerican Development Bank

Tuna war. (Bulletin Board).
January 1, 2000... * Mexico's tax on Ecuadorian canned tuna: 23% * Value of Ecuadorian tuna exported to Mexico: US$40 million yearly * Total trade between the two countries: US$450 million yearly * Percent of that trade from Mexico to Ecuador: 80...

Soda Solution. (Bulletin Board).
January 1, 2000... Soda Solution * Yearly per-capita soft-drink consumption (of 8-ounce servings): Mexico 528 Chile 365 Argentina 289 Colombia 255 Bolivia 160 Peru 50 (half what it was in '90) Source: Phelps...

Phone revenue dip. (Bulletin Board).
January 1, 2000... * Government-mandated reduction in Argentine monthly telephone charges for commercial and governmental clients as of March 1, 2000: 19.5% * Residential reduction: 5.5% * Expected yearly reduction in phone companies' annual revenues:...

El Nino's good news. (Bulletin Board).
January 1, 2000... * Expected increase in Peru's agricultural output in 1999: 10.3% * Reason for increase in production: El Nino's rains Source: The Miami Herald

Virtual watchdogs. (Security).
January 1, 2000... Armed only with a fake bark, security firm Tradicom's virtual" watchdog promises to take a bite out of crime. The dog, cast in fiberglass, has a microphone and video camera implanted in its head, allowing flesh-and-blood guards to monitor...

Spinning the web. (The internet).
January 1, 2000... Pouncing on the current e-commerce mania, Mexico's Monterrey Tech University System, the University of Miami and IBM have created an "e-business executive briefing center" targeting Latin America's CEOs. The center will be housed at the...

The hills are alive. (Agriculture).
January 1, 2000... Scientists at the International Center for Tropical Agriculture (CIAT) in Call, Colombia, have developed a novel approach to hillside agriculture in the Andean zone and Central America -- where more than one million square kilometers of...

Loving Textiles: Honduras' second-largest employer stays at the top by making modernization and diversification his top priority. (Strategies).
January 1, 2000... Like most CEOs, when Juan Canahuati faces an obstacle to advancing his business, he finds a way through it. The difference for Canahuati is that, in his case, he might take the entire nation of Honduras with him. Faced with diminishing...

Shipping the future: In Venezuela, DHL moves away from documents and into the world of e-commerce. (Strategies).
January 1, 2000... Noel Poler recognizes that a company needs to keep evolving to stay alive. In the case of his company, DHL Worldwide Express, this has meant developing new niches in tandem with new technologies. After all, how much future could there be for...

A gem of a company: Hans Stern built his jewelry empire from the ground up by targeting tourists and marketing Brazil's unique offerings. (Strategies).
January 1, 2000... In 1951, Hans Stern was a struggling jeweler in Rio de Janeiro when his big break arrived. It came in the form of a big-ticket order from a big-name customer: Nicaraguan dictator Anastasio Somoza, who paid Stem US$20,000 for an elaborate...

The all-purpose telecom play: Not content with its role as the nation's leading long-distance provider, Chile's Entel is investing in a future of alternate telecom services. (Strategies).
January 1, 2000... WHEN CHILE'S National Telecommunications Company--better known as Entel Chile--was formed by the government in 1964, it was a typical long-distance telephone monopoly. But when Chile emerged as an early leader in privatization, Entel was...

Compaq holds onto the top: does CEO Barbara Mair have the magic to keep compaq on top of the Mexican PC market? A recent deal with Telmex says she does. (Strategies).
January 1, 2000... In thw world of PC sales, you don't need to have the best idea first. But if your competition comes up with something, you'd better respond fast. That has been the trademark of Barbara Mair, CEO of Compaq Computer de Mexico. Last year,...

Riding out the storm: how Ecuador's top retail banker Fidel Egas, has managed to survive Ecuador's worst financial crisis in decades. (Strategies).
January 1, 2000... While most people look forward to Fridays, Fidel Egas has a different reaction. For Ecuador's leading retail banker and his Banco de Pichincha, Fridays in late 1998 and early 1999 meant hundreds of customers lining up to withdraw all or most...

Undervalued in Argentina: developer Eduardo Elsztain is betting big that the real estate market in Buenos Aires has plenty of room to grow. (Strategies).
January 1, 2000... Eduardo Elsztain, chairman of Buenos Aires-based real estate company Inversiones & Representaciones SA, bubbles with enthusiasm as he details the company's upcoming projects aimed at changing the face of the city Brandishing a huge aerial...

Flying high: CEO Gordon Bethune aims his aircraft south, taking Continental to the No. 2 spot in Latin America. (Strategies).
January 1, 2000... The man who wrote the book on going from the bottom of the pack to a frontrunner in the airline industry has a simple and straightforward strategy for enhancing his airline's position as one of the leading carriers in Latin America. For...

Traveling by Net: Viajo.com hatches a plan to overthrow American Express and become the region's No. 1 online travel agency. (Strategies).
January 1, 2000... Enrique felgueres grew up in the travel business. His family built its fortune on the industry and owns the second-largest travel agency network in Mexico, right behind American Express. So, it's no wonder he wants to start an online travel...

Beer Baron: Grupo Modelo CEO Carlos Fernandez sets a deadline for catapulting his company into the world's Top 5 beer brewers - 2004.
January 1, 2000... When Carlos Fernandez inherited the reins of Grupo Modelo from his uncle Antonio, the company was already climbing toward the top of the world beer market. Its various brands dominated local sales in Mexico, where it's had a strategic...

Architect of the internet: The Internet in Latin America is now flush with capital-and promise. But who will carve out the winning niches and define the look and feel of the new medium?
January 1, 2000... With most of Latin Americas Internet customers yet to log on, and so much of the region's virtual world yet to be built, the shape of the cyberspace to come is anybody's guess. Who will end up as the dominant players? What models will...

Incan Empire.
January 1, 2000... Lorenzo Sousa may be the most successful self-made captain of industry in all of Peru. The CEO of Peruval Corporation now has acquired stakes in an airline, a railway, a chain of hotels, an investment brokerage and more--and all before age...

Short-term economic outlook. (Marketplace Rating the Countries).
January 1, 2000... THE NEW YEAR has arrived on a generally positive note. In fact, there were no significant Y2K incidents. The improving outlook follows a generally downbeat year in 1999 caused mostly by lower commodity prices and currency market indigestion....

Battle of the bolsas: Brazil vs. Mexico in 2000: A comparison of Mexican and Brazilian equity markets reveals two distinct approaches. (Marketplace: Equities).
January 1, 2000... As we think about returns from Brazil and Mexico in 2000, we need to recognize that they are completely different markets. Minority rights, politics, liquidity, restructuring, inflation and currency risk, determinants of pricing power and...

Sovereign debt outlook: A glance at the short-and medium-term prospects for sovereign debt issues by Latin Americas top economies. (Market Place: Bonds).
January 1, 2000... MARKET OVERVIEW: NEUTRAL/POSITIVE 'While global financial markets seem to have successfully weathered Y2K, concerns about higher interest rates and volatility in US stock markets have now come into focus. Emerging markets will continue...

Flat and sharp. (Technology Gadgets).
January 1, 2000... Flat-panel monitors take up virtually no space, are sleek in design and offer bright displays with beautiful graphics. That makes them easier on the eyes than any CRT on the market today, both to use and to look at. * ACER FP855 The...

Taking care of personal business. (Technology: Business Web Sites).
January 1, 2000... www.agendactiva.com Calendar, contacts and to-do lists on the Web, wherever you go Agendactiva offers both personal and shared-group versions of the planner. Groups have a "home page" that displays messages and announcements; invited...

Beyond the real world: The art of Julio Larraz, among the most famous living Cuban-American artists, pushes images from the real world into a psychological realm that is larger than life. (Style of Life: The Arts).
January 1, 2000... At first glance, you might consider the paintings of Julio Larraz to be the work of a realist. The images are not surreal, after all: Boats, bull rings, stark sun-filled rooms, powerful-looking individuals staring woefully into space--all are...

Sensible in Santiago: Chile's capital city is long-practiced at hosting visiting business travelers, with fine taste, good service and a typically Chilean sense of efficiency. (Style of Life: Travel).
January 1, 2000... For at least two decades Chile has had the reputation of a country keen to do business with foreigners. Although short-term capital flows are controlled to avoid speculative attacks on the currency and assets, direct long-term investment from...

Speed wrapped in comfort: A ride in the 2000 Jaguar XKR convertible reveals a killer combination of power and beauty. (Style of Life: Automobiles).
January 1, 2000... ONE CAN EASILY imagine the James Bond theme music playing in the background when stepping into the convertible Jaguar XKR. Yes, James Bond drives a BMW but that has more to do with marketing than reality The guy belongs in a Jaguar XKR full...

The continent of the spirits. (Style of Life: Beverages).
January 1, 2000... (With apologies to Isabel Allende) While the supernatural is always present from the Rio Grande to Patagonia, Latin America is also happily committed to the enjoyment of more terrestrial spirits, both native and imported. "We are...

The tourism key: How can you sustain democracy? By spreading the wealth through tourism. (Final Thoughts).
January 1, 2000... OF ALL THE ISSUES affecting Latin America today, few are as critical as poverty. In spite of all the economic progress of the last two decades, poverty has increased. The question must be asked: Is the free market system the only answer, and...