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

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

Canon's innovative color bubble jet printers lead the way in high-quality output.
June 1, 2000... In 1977, Canon researcher Ichiro Endo accidentally touched a needle full of ink with a hot soldering iron. The ink inside heated up suddenly, increased in volume, and spurted forth. That discovery by Endo, now Canon's Director of Product...

Once again, free trade. (Letter from the Editor).
June 1, 2000... THE COVER STORY THIS MONTH FOCUSES ON THE Challenges faced by DaimlerChrysler as it attempts to rationalize its production across Latin America. Among other things, the article points out the startling difference between DaimlerChrysler's...

Regional economic recovery. (Portfolio: Regional).
June 1, 2000... As a sign of further regional economic recovery, first quarter 2000 saw personal computer shipments to Latin America jump nearly 50 percent from the same period in 1999. Brazil led with 80 percent growth, followed by Mexico's 63 percent,...

National Federation of Coffee Growers. (Portfolio: Regional).
June 1, 2000... In a show of solidarity Mexico and Colombia have joined the National Federation of Coffee Growers in withholding 20 percent of production from world markets in an emergency effort to lift prices. At the same time, increased production is...

Telefonicas. (Portfolio: Regional).
June 1, 2000... Following Telefonica's failed merger with Royal KPN NV, the telco's Internet arm, Terra Networks, announced it will purchase US-based portal Lycos Network for US$12.5 billion in stock. German media group Bertelsmann joined the deal, agreeing...

Regional trade integration. (Portfolio: Regional).
June 1, 2000... Expanding regional trade integration, Mexico, Guatemala, Honduras and El Salvador signed a free-trade agreement after eight years of negotiations.

Telefonica de Argentina's Unifon. (Portfolio: Argentina).
June 1, 2000... Telefonica de Argentina's Unifon wireless unit announced it will spend US$1.7 billion this year upgrading its network for digital services.

Banco de Galicia. (Portfolio: Argentina).
June 1, 2000... One of the country's largest locally controlled banks, Banco de Galicia, offered shareholders a swap that will increase the Escasany, Ayerza and Braun families' voting rights. The move would clear the way for the company to raise money...

World Trade Organization. (Portfolio: Brazil).
June 1, 2000... The country has broken new ground with the World Trade Organization by appealing the WTO's ruling that the government is continuing to give illegal subsidies to Embraer.

BellSouth. (Portfolio: Brazil).
June 1, 2000... Atlanta-based BellSouth purchased a 16.5 percent stake in Tele Centro Qeste Celular Participacoes for US$229 million.

Airline turbulence. (Portfolio: Brazil).
June 1, 2000... Airline turbulence continues: yang President Fernando Pinto resigned under pressure. Vasp faced legal action from creditors, leading to the seizure of aircraft. Tam and Transbrasil began code sharing on several routes, reducing their flights.

Chase Capital Partners. (Portfolio: Brazil).
June 1, 2000... Chase Capital Partners joined other investors to pay US$93.7 million for a stake in Internet logistics company Total Express.

Gas Natural. (Portfolio: Brazil).
June 1, 2000... Gas Natural (part of Repsol-YPF) has paid US$297 million for a natural gas concession in Sao Paulo state. The company will invest US$222 million in the operation over the next decade.

Cordillera Comunicaciones. (Portfolio: Chile).
June 1, 2000... Cordillera Comunicaciones, owned by Ricardo Claro's Cristalerias de Chile and a unit of AT&T, paid US$270 million to buy out Telefonica CTC's interest in Metropolis Intercom and gain full ownership of the cable television company Claro had...

Central bank. (Portfolio: Chile).
June 1, 2000... In a move expected to increase foreign investment, the central bank has removed rules that required all foreign investors to leave their money in the country for at least 12 months.

BellSouth bought operating control from Valores Bavaria of Celumovil. (Portfolio: Colombia).
June 1, 2000... BellSouth bought operating control from Valores Bavaria of Celumovil, the country's No. 2 cellular phone operator, for US$295 million.

Perez Companc. (Portfolio: Ecuador).
June 1, 2000... Argentine energy company Perez Companc announced the discovery in Ecuador of more than 500 million barrels of probable oil reserves, with a value of US$2 billion.

Group Imsa. (Portfolio: Mexico).
June 1, 2000... Steelmaker Group Imsa increased its US presence with the US$234 million purchase of two steel processing plants and seven steel finishing centers from Australia's Broken Hill Proprietary Company.

France Telecom. (Portfolio: Mexico).
June 1, 2000... Telefonos de Mexico's ownership will soon be reshuffled: France Telecom has announced it will sell its 7 percent stake in the company, worth about US$2.6 billion, through a public offering and company share buyback this month.

Grupo Azucarero Mexico. (Portfolio: Mexico).
June 1, 2000... The sugar industry has begun to show signs of trouble. Grupo Azucarero Mexico (GAM) received protection from paying US$126 million in debt. Grupo Santos and Machado continue to have liquidity problems. And Consorcio Azucarero Escorpion (CAZE)...

DaimlerChrysler. (Portfolio: Mexico).
June 1, 2000... The auto industry revved up, as DaimlerChrysler announced plans to invest US$2 billion in the country over the next five years. This follows Renault's recently announced plans to spend US$400 million to re-enter the country and Volkswagen's...

Following up a successful three-year bond issue. (Portfolio: Mexico).
June 1, 2000... Following up a successful three-year bond issue, Mexico became the first Latin American country to sell a five year fixed-rate bond.

Banco Santander Central Hispano. (Portfolio: Mexico).
June 1, 2000... Spain's regional Banco Santander Central Hispano won the auction for Mexico's No. 3 bank, Grupo Financiero Serfin, and will pay the bid price of US$1.56 billion from the proceeds of a US$2.70 billion public share issue.

Grupo Financiero Banamex-Accival. (Portfolio: Mexico).
June 1, 2000... Mexico's largest financial group, Grupo Financiero Banamex-Accival (Banacci), has launched a US$2.4 billion hostile takeover attempt of No. 2 Grupo Financiero Bancomer, which signed a preliminary US$1.2 billion agreement with Spain's BBVA. As...

TV Azteca. (Portfolio: Mexico).
June 1, 2000... TV Azteca and US-based NBC have settled a contract dispute. Azteca agreed to pay NBC US$46 million, and NBC has taken a 1 percent stake in Azteca for US$26 million. NBC will also buy a small stake in Azteca subsidiary Todito.com.

Electricite de France. (Portfolio: Mexico).
June 1, 2000... Electricite de France purchased a 51 percent stake in Electricidad Aguila de Altamira.

Banco General and Banco del Istmo. (Portfolio: Panama).
June 1, 2000... Banco General and Banco del lstmo are both bidding to become Central America's largest private financial services group, with competing offers for Primer Grupo Nacional. Banco General offered a total of US$258 million in cash. Istmo offered a...

Panama Canal. (Portfolio: Panama).
June 1, 2000... A third lane of locks in the Panama Canal is planned to accommodate ships too large for the current lanes. The locks are expected to cost between US$4 billion and US$5 billion.

CA Electricided de Caracas. (Portfolio: Venezuela).
June 1, 2000... CA Electricidad de Caracas was purchased in a hostile takeover by AES Corp. of the US. AES's final bid, approved by regulators, then put on hold, offered US57 cents per share, matching the price EDC's management offered in an attempt to block...

Banco Union. (Portfolio: Venezuela).
June 1, 2000... Banco Union and savings and loan Caja Familia announced a merger that creates Union Caja Familia Banco Universal, the country's second-largest bank, with almost US$3 billion in assets. Elsewhere in the banking industry, Cavendes Banco de...

Average Daily Oil Production.
June 1, 2000... Average Daily Oil Production (million of barrels, 1999) MEXICO 3.35 VENEZUELA 2.79 BRAZIL 1.36 ARGENTINA 0.85 COLUMBIA 0.83 ECUADOR 0.38 OTHERS 0.36 Latin American countries have lever-aged their...

Employment.
June 1, 2000... Employment Percent of population aged 10 and over that is economically active Country 1985 1990 1995 2000 2005e 2010e Argentina 49.0 50.5 51.4 52.6 53.7 54.7 Bolivia 47.0 48.9 50.1...

Mexico tops Latin American destinations. (Bulletin Board).
June 1, 2000... * Mexico's rank among worldwide tourism destinations in 1999: No. 7 (top in Latin America) * Mexico's global tourism market-share: 3% * Top global tourism destination: France (10.7% market share) * Mexico's rank among worldwide...

Tourism spending. (Bulletin Board).
June 1, 2000... * Top Latin American tourism spender: Brazil * Money spent: US$5.7 billion Source: World Tourism Organization

Does NAFTA help? (Bulletin Board).
June 1, 2000... * Latin American opinion leaders who say the North American Free Trade Agreement has had little effect on their economies: 50% * Those who say NAFTA has helped: 25% * Those who say NAFTA has hurt: 18% Source: Reuters/Zogby...

CEO supply and demand. (Bulletin Board).
June 1, 2000... * Growth in demand for senior executives in Latin America in 1999: 30% * Average yearly Argentine CEO compensation: US$800,000 * Average compensation in Mexico and Venezuela: US$500,000 * Average compensation in Brazil:...

Government support. (Bulletin Board).
June 1, 2000... * Ecuadorians who support President Gustavo Noboa: 50% * Ecuadorians who live in poverty: 62.5% Source: Reuters

Chile imports more wheat after drought. (Bulletin Board).
June 1, 2000... * Wheat imported by Chile in 1998: 400,919 tons, US$88.43 million * Wheat imported by Chile in 1999: 630,370 tons, US$65.80 million * Volume increase: 57% * Chile's top wheat providers: Canada, United States, Argentina ...

Kidnappings for ransom set records. (Bulletin Board).
June 1, 2000... * Worldwide kidnappings for cash: 1,789 * Portion in Colombia: 50% * Portion in Mexico: 16% * Average ransom demand in Colombia for an expatriate businessman: US$2 million * Top ransom demand: US$50 million Source:...

A home (page) closer to home. (The New Economy).
June 1, 2000... The US military withdrawal from Panama has led to at least one high-tech perk. @Altec Corporation recently opened a state-of-the-art Panama Internet Data Center in a former US military building that had been used for data processing. The new,...

One street at a time. (Demographics).
June 1, 2000... Corporations that want to know exactly where to locate retail operations in Latin America need to look no further than Geoscape, a Miami-based research firm that has now completed a neighborhood-by-neighborhood economic profile of Mexico and...

A room not at the top. (Hospitality).
June 1, 2000... Executives visiting La Paz, Bolivia, who fear failing prey to sorojchi, or altitude sickness, now have an alternative. The Casa Grande is a new five-star apartment-hotel located in the wealthy Zona Sur suburb, which is about 500 meters lower...

The future takes flight. (Trends).
June 1, 2000... This year's International Airline CEO Conference, the annual gathering of Latin American airline CEOs, took place in May in Orlando, Florida. The conference has become a sounding board for industry trends and strategies. LatinCEO...

Bottoms up: after months of regulatory hurdles, AmBev emerges as Latin America's largest beverage company, with plans to expand and export. (Strategies).
June 1, 2000... Barely a few months old--officially, at least--Latin America's largest multinational is already looking for partnerships and merger opportunities. After the painfully long nine-month merger process that gave birth to Companhia de Bebidas das...

Cyber Cable: cable provider Globo Cabo is transforming itself into a broadband player in Brazil, but has the company arrived at the party too late? (Strategies).
June 1, 2000... IN BRAZIL, GLOBO CABO SA IS the Microsoft of the cable industry. Together with sister company Net Sul, Nasdaq- and Bovespa-listed Globo Cabo controls 80 percent of the Brazilian cable market. Not coincidentally, Microsoft came calling in...

All that glitters... The Yanacocha mine has helped catapult Peru into the ranks of the world's leading gold producers. Now top executive Carlos Santa Cruz wants to produce more. (Strategies).
June 1, 2000... YANACOCHA IS NO ORDI-nary mine. As its star has risen, so has that of Peru's entire gold industry. Ranked among "others" in the world of gold producers a decade ago, Peru was catapulted into the eighth place globally and No. 1 in Latin...

Where coke rules: overkill? Embonor CEO Andres Vicuna doesn't know the meaning of the word when it comes to marketing Coca-Cola products in Chile, Peru and Bolivia. (Strategies).
June 1, 2000... Visitors to Arica, the Chilean desert city 20 kilometers south of the Peruvian border, must sometimes wonder if they've arrived at some gigantic set for a bubbly Coca-Cola advertisement. The unmistakable red and white logo is everywhere, from...

Fiber optic fever: the race is on to build a Latin American broadband communications network, and Impsat's CEO is determined to take first place. (Strategies).
June 1, 2000... In the high-speed, high-tech world of data communications, where cash rules, Buenos Aires-based Impsat Fiber Networks is clearly better positioned than most. In February it raised US$243 million with an IPO on the Nasdaq, only to launch...

Bottom fishing: US agribusiness giant Cargill has set its sights on undervalued Argentine real estate. Next stop: Brazil and Chile. (Strategies).
June 1, 2000... RANKED NO. 45 ON FORtune magazine's list of the world's 500 largest companies, US agribusiness giant Cargill has a top spot on the food chain. With 82,000 employees spread over 59 countries, the company is a leading processor of oilseeds,...

Truck tracker: Flavio Mansi's company is positioned to help protect the booming cargo business in Mexico and beyond. (Strategies).
June 1, 2000... Few companies in Mexico can boast sustained growth of 50 percent or more annually Corporation Nacional de Radiodeterminacion (CNR), the Mexican subsidiary of Qualcomm's Omnitracs cargo tracking service, believes it is one of them. With sales...

Merger in Mayhem.
June 1, 2000... Eighteen months after its merger, DiamlerChrysler is still ironing out the fabric of its Latin American operations. One thing is certain: Its subsidiary presidents in Brazil, Argentina and Mexico, who act as regional field commanders, face...

Steeling for recovery: the CEO of Venezuela's largest steelmaker is in the spotlight for getting the company back on track. Now he must complete Sidor's turnaround.
June 1, 2000... When Brazilian President Fernando Cardoso visited Venezuela recently, his Venezuelan counterpart, Hugo Chavez, took him on a tour of Sidor, the country's largest steelmaker, as evidence of a successful privatization that has turned around a...

Latin American equities. (Marketplace).
June 1, 2000... Despite an early rally, the stock markets of Latin America have not performed particularly well in the first ha of 2000. As of May, Brazil's Bovespa was down 26 percent in dollar terms, with the Mexican IPC not far behind, down 25 percent....

Virtual city: How the Web is being harnessed by schools, business and government to improve access to education for Colombia's rural population and the poor. (IT Solutions).
June 1, 2000... Located in the center of Colombia, the small city of Manizales is a hub for several major universities, It is also emerging as the epicenter of the country' educational revolution. Manizales is the launching pad for Colombia's Virtual...

Travel away; IPO indulgence. (Web Sites).
June 1, 2000... www.fodors.com Just the Right Amount of Travel Information If the name sounds familiar, it should. The Web site is a spin-off of Fodor's Travel Publications, publisher of the ubiquitous travel guides. Some of the site's content comes...

Tiny Titans: Try a personal digital assistant and you'll wonder how you ever got by without it. So grab a Visor; Aero, or Jornada and go. (Gadgets).
June 1, 2000... HEWLETT-PACKARD JORNADA 545 POCKET PC The popular Jomada series from Hewlett-Packard has spawned a handheld model with a Spanish-language color interface designed to compete cradle-to-cradle with Compaq. The Jomada wns Microsoft Windows...

Fine dining in Atlanta: as Atlanta grows in international stature, so do its restaurants. (Travel).
June 1, 2000... ATLANTA HAS LONG BEEN CONSIDERED the heart of the US South--the home of Southern hospitality and, of course, Southern cooking. Now the city is trying to position itself as a hub for Latin American trade and commerce. Although it has grown...

Scent of success. (Fashion).
June 1, 2000... For some businessmen in Latin America, the fragrance they wear is as important as their tie, suit or shoe selection. Nothing can be more personal than the way an individual smells. And few things say more about a person than the cologne he...

New heights for Latin art: Latin American art has already entered the mainstream for serious collectors. Now, the latest auctions at Sotheby's and Christie's have blessed the genre with new levels of value. (The Arts).
June 1, 2000... For Sotheby's the evening auction appeared to be business as usual. The room was filled to capacity, with a dozen or so people standing at the back, the audience offering bids with its typical self-restraint. The only interruption was a...

Luxury off-road: versatility, security and strength are the main selling points for SUVs. Of course, throwing in performance and luxury can't hurt. (Automobiles).
June 1, 2000... SPORT UTILITY VEHICLES, SUVs, were originally little ore than truck platforms with closed-off cabins, creating people movers with off-road capabilities. Since then, the category has continued to evolve and expand to include vehicles that have...

Wireless universe: Latin America, leaping over old technologies, is on the forefront of the wireless web. (Final Thoughts).
June 1, 2000... Observing technological developments from a historical perspective, we can identify discontinuity points--where a new technology breaks away from anything similar in the past. These paradigm shifts sometimes represent such a dramatic change...