Latin CEO: Executive Strategies for the Americas articles from May 2001

Latin CEO: Executive Strategies for the Americas archives from May 2001

The importance of banking. (Letter from the Editor).
May 1, 2001... THIS MONTH WE FEATURE our first commercial banker on the cover. And it's no small bank, but a mammoth financial institution. With US$14 billion in deposits, Banco Itau is the No. 2 private-sector bank in Brazil. Also in this issue, we...

Mercosur. (Upfront: Argentina).
May 1, 2001... Economy minister Domingo Cavallo has announced a number of initiatives aimed at shocking the Argentine economy to life. Mercosur has agreed to allow the country to eliminate all tariffs on capital goods until year-end 2002, even though this...

Vaccinate. (Upfront: Argentina).
May 1, 2001... The government has decided to vaccinate 98 percent of Argentina's 50 million cattle to protect them from foot-and-mouth disease. Several major markets had already endangered the country's US$600 million market by suspending imports from...

Banco Santander Central Hispano. (Upfront: Brazil).
May 1, 2001... Banco Santander Central Hispano has offered buyout packages to more than 80 percent of workers at Banco do Estado de Sao Paulo (Banespa), and about 8,200 employees have accepted. Some 18,000 of Banespa's 22,300 employees were eligible for the...

Petroleo Brasileiros. (Upfront: Brazil).
May 1, 2001... Following the sinking of one oil platform and a leak at another, Petroleo Brasileiros' insurance premium has increased to US$48.8 million per year, up 600 percent from last year's premium. Petrobras was insured for US$500 billion on the...

Capital markets. (Upfront: Chile).
May 1, 2001... Capital markets have reacted positively to tax reform proposals which include eliminating the 15 percent tax on foreign investments and on short sales of stocks and debt instruments, and ending the 4 percent tax that banks pay on foreign...

Rival mobile phone operators BellSouth and Comcel are battling over BellSouth's handsets. (Upfront: Colombia).
May 1, 2001... Rival mobile phone operators BellSouth and Comcel are battling over BellSouth's handsets, which the company had programmed with "subsidy lock" features that prevent the low-cost Nokia models from being used with other operators' service. The...

The country has signed a ground-breaking free trade pact with Canada. (Upfront: Costa Rica).
May 1, 2001... The country has signed a ground-breaking free trade pact with Canada. Under the accord, Costa Rica will immediately abolish tariffs on 65 percent of Canadian goods, while Canada will abolish tariffs on 86 percent of Costa Rican goods. Tariffs...

The fixed-line telephone monopoly that had been enjoyed by Andinatel and Pacifitel has ended. (Upfront: Ecuador).
May 1, 2001... The fixed-line telephone monopoly that had been enjoyed by Andinatel and Pacifitel has ended, and the government will auction ten new wireless bands this August. The government hopes the opening will bring US$1.5 billion to the country over...

Slowdowns in the US economy have begun to hit both US-owned and Mexican companies. (Upfront: Mexico).
May 1, 2001... Slowdowns in the US economy have begun to hit both US-owned and Mexican companies, leading to some 240,000 layoffs in first quarter 2000, Since then, Grupo Televisa has announced it will lay off 4 percent to 5 percent of its workforce--a...

Cristalglass Vidrio Aislante. (Deals Spotlight).
May 1, 2001... In a bit of the "conquista"--but in reverse--Mexico-based Vitro, S.A. de C.V. announced it will acquire Spanish glass maker Cristalglass Vidrio Aislante, S.A. The all-stock deal gives Vitro a controlling interest in Cristalglass, which...

Merrill Lynch & Co and Kokusai Securities Co Ltd. (Bonds).
May 1, 2001... The government of Colombia sold [Yen]30 billion (US$240 million) of "Samurai" bonds, marking the country's first step into the Japanese market since 1996. The four-year bonds were offered April 11. The bonds will yield the equivalent of...

Petroleo Brasileiro SA. (Bonds).
May 1, 2001... Petroleo Brasileiro SA (Petrobras) plans to sell US$300 million in 7-year bonds in a bid to extend its debt to longer maturities at lower borrowing rates, according to corporate finance director Almir Barbassa. UBS Warburg LLC is leading the...

Home Depot. (Bonds).
May 1, 2001... Chilean home and building materials retailer Sodimac plans to issue a US$100 million bond in Chile to pay off debt and finance expansion. Sodimac, which competes with US-owned Home Depot, is awaiting regulatory approval. The bonds will be...

BellSouth Corp. (IPOs).
May 1, 2001... BellSouth Corp. says it expects to launch an initial public offering for its growing Latin American operations. The company entered the region in 1989 and is now one of the top three wireless operators in the region, with more than 7.5...

Corning International Corp. (Investments and M&As).
May 1, 2001... Corning International Corp. raised its stake to 50 percent (from 25 percent) in Brazilian fiber optic cable manufacturer FICAP-Optel. It purchased the additional stake from Chile-based Madeco SA. The arrangement calls for Corning's Buenos...

Liberty Media Group. (Investments and M&As).
May 1, 2001... Authorities approved Telefonica Argentina's sale of an additional 35 percent stake in cable television concern Cablevision to investment firm Hicks, Muse, Tate & Furst and the Liberty Media Group. The US$960 million sale was completed at the...

Phelps Dodge Corp. (Investments and M&As).
May 1, 2001... Cia. Vale do Rio Doce (CVRD), the world's No. 1 iron-ore producer, announced it would sell its controlling stake in pulp producer Celulose Nipo-Brasileira SA (Cenibra). The 51 percent stake in Cenibra is expected to fetch between US$500...

Bradesco. (Investments and M&As).
May 1, 2001... Bradesco, Brazil's largest private-sector bank, says it plans to buy back as much as 8.8 percent of its publicly traded shares during the next three months. The bank will buy up to 25 billion common shares and up to 67 billion preferred...

Chilean energy and forestry company Copec SA says it plans to sell a 25 percent stake in power company Empresa Electrica Guacolda SA. (Investments and M&As).
May 1, 2001... Chilean energy and forestry company Copec SA says it plans to sell a 25 percent stake in power company Empresa Electrica Guacolda SA, which will spell the company's exit from the electricity sector. The Angelini family, which controls Copec,...

Oslo-based Norsk Hydro ASA is negotiating to buy a stake in Chilean fertilizer maker Sociedad Quimica y Minera de Chile SA. (Investments and M&As).
May 1, 2001... Oslo-based Norsk Hydro ASA is negotiating to buy a stake in Chilean fertilizer maker Sociedad Quimica y Minera de Chile SA (Soquimich). The acquisition will give Norsk Hydro raw materials that include iodine and lithium, as well as a...

Aerovias Nacionales de Colombia SA. (Investments and M&As).
May 1, 2001... The planned merger of Colombia's No. 1 airline Aerovias Nacionales de Colombia SA (Avianca) with No. 2 airline Aces was held up by government regulators who asked the companies to produce additional documents by June 27. The two carriers were...

Siderurgica de Medellin SA and Siderurgica de Boyaca. (Investments and M&As).
May 1, 2001... The merger of Colombian steel companies Siderurgica de Medellin SA (Simesa) and Siderurgica de Boyaca (Sideboyaca) will give the consolidated company 60 percent control of the local reinforced-steel market, according to Sideboyaca director...

Banco Interamericano de Finanzas de Peru. (Investments and M&As).
May 1, 2001... Banco Interamericano de Finanzas de Peru (BIF) says it wants to acquire part of the equity of Banco del Nuevo Mundo, which was seized by regulators last December. BIF is the nation's No. 11 bank. The purchase would require regulatory approval.

French aluminum group Pechiney wrapped up a US$208 million deal to expand Venezuela's state-owned bauxite and alumina producer Bauxilum. (Investments and M&As).
May 1, 2001... French aluminum group Pechiney wrapped up a US$208 million deal to expand Venezuela's state-owned bauxite and alumina producer Bauxilum. Pechiney plans to spend US$108 million to expand production capacity to 2 million tons within three...

Banco Bilbao Vizcaya Argentaria SA. (Investments and M&As).
May 1, 2001... Banco Bilbao Vizcaya Argentaria SA sold its stake in Bolivian pension fund AFP Futuro to Swiss insurer Zurich Financial Services for US$19 million. The divestiture came at the request of Bolivian regulators. BBVA continues to have a majority...

International bond issues.
May 1, 2001... International Bond Issues 2000 Bond Issues (US$ millions) Venezuela $489 Brazil $10,955 Uruguay $679 Argentina $13,045 Chile $680 Colombia $1,451 Costa Rica $250 El Salvador $50 Mexico ...

Executive cost of living.
May 1, 2001... Executive Cost of Living City Dec. 2000 Sep. 1999 Tokyo 160 164 New York City 100 100 London 99 107 Buenos Aires 92 92 Mexico City 89 ...

Total control. (Bulletin Board).
May 1, 2001... * Panama's total GDP: US$10 billion * Number of Panamanians who control half the nation's GDP: 76 * Portion of Panamanians who live on US$2 or less per day: 34% Source: Financial Times

Dot bomb. (Bulletin Board).
May 1, 2001... * Jobs created by Argentine Internet firms in 2000: 8,000 * Jobs cut by Argentine Internet firms in first quarter 2001: nearly 4,000 Source: Business News Americas

Burning up the net. (Bulletin Board).
May 1, 2001... * Minutes clocked online each day by Brazilian Internet users: 69.4 * World rank among Web surfers: No. 1 * Minutes clocked by US users: 69.2 * World Rank: No. 2 * Worldwide average: 59.6 Source: Jupiter Media Metrix

Taking flight. (Bulletin Board).
May 1, 2001... * Colombians who have left Colombia since 1996: 1.1 million * Capital that has left Colombia since 1999: US$2 billion * Capital flight since 1999 as a percent of GDP: 2.2 percent Source: The New York Times

Taxes taken. (Bulletin Board).
May 1, 2001... * Official estimate of Mexican tax evasion: 30% * Rank in terms of tax collection among 29 countries in the Organization of Economic Cooperation and Development (OECD): No. 29 Source: Financial Times

Online banking? (Bulletin Board).
May 1, 2001... * Latin American banks with Web sites: 90% * Latin American banks with technology to provide online services: 40% Source: Hewlett Packard Latin America

Business capital. (Bulletin Board).
May 1, 2001... * Latin America's top city to do business, based on work force skills, stable governance and quality of life: Buenos Aires * Asia's top city: Hong Kong * Internet connections per 1,000 people in Buenos Aires: 3 * Internet...

Hook me up. (Bulletin Board).
May 1, 2001... * Current cost to install a legal phone line in Ecuador: US$60 * Black market cost of a phone line in Ecuador: US$1,000 Source: Business News Americas

It's going to be a gas. (Energy).
May 1, 2001... Cleaner, cheaper fuel for cars, taxis and buses -- in the form of compressed natural gas (CNG) -- is coming into play in some of the most polluted capital cities in Latin America. And for good reason: besides costing half as much as gasoline,...

Your 15 minutes are up. (Government).
May 1, 2001... The Brazilian government has launched a nationwide program to bring its people just a little closer -- via the Internet, of course. As part of its Electronic Government program, the first "Citizen's Room" has been opened in Brasilia. The...

A slice of the action. (E-Commerce).
May 1, 2001... Each year, Mexicans living in the US send some US$6 billion to relatives back at home. Now e-commerce site decompras.com wants to capture some of that flow. The idea is for customers to buy products from Decompras and have them delivered to...

For whom the bell tolls: bell helicopters gets a piece of the controversial Plan Colombia money bolstering its plans to sell retrofitted Hueys for use in the urban and natural jungles of Latin America. (Strategies).
May 1, 2001... POLITICIANS MAY DEBATE the pros and cons of Washington's latest war on drugs, but one thing's for sure: the US State Department's US$1.3 billion contribution to "Plan Colombia" is a bonanza for Texas based Bell Helicopter Textron and its...

Slippery result: Chiquita CEO Steven G. Warshaw has won the banana war, at least for now. Rival Dole didn't do quite as well, but that's not his concern. (Strategies).
May 1, 2001... STEVEN G. WARSHAW IS sleeping more soundly these days, now that his war is over. The banana war, that is. Warshaw, CEO of Chiquita Brands International Inc., recently celebrated the signing of an accord between the European Union and the...

Changing history? Hernan Lara confronts the most important mission of his career; building a massive oil pipeline that could help jump-start Ecuador's economy. (Strategies).
May 1, 2001... MOST CHIEF EXECUtives are accountable to shareholders and employees, but you could say Hernan Lara is accountable to a nation of almost 13 million people. Ecuador's hope of digging out from under two decades of economic stagnation is pinned...

Regional vision: when CEO Leo Mullin took charge at Delta, the US airline had virtually no flights into Latin America. That's all changed. (Strategies).
May 1, 2001... RUMOR HAS IT THAT Delta Air Lines' former CEO Ron Allen used to boast that as long as he was at the helm, Delta would never venture into Latin America. True or not, Delta's route system reflected that sentiment. During Allen's tenure, the...

Chile's Bloomberg? Santiago-based Business News Americas is pushing to be the regions premiere online news service. (Strategies).
May 1, 2001... ITS 8:30 A.M. IN THE NEWSroom of Business News Americas, the online provider of Latin American business information based in Santiago, Chile. Reporters and translators--an array of Brits, Chileans, Americans, Brazilians, Australians and...

Tech tactics: how a doctor-turned-software CEO is using Argentine brainpower to capture US market share. (Strategies).
May 1, 2001... IT SOUNDS LIKE A PIPE DREAM fueled by New Economy mania: Hire underpaid Argentine computer programmers and put them to work building software for the hyper-competitive US market. But with precisely this business plan, a small company in the...

The big bank theory.
May 1, 2001... With the largest profits in Brazil's banking sector and a 10-year increase of more than 7,000 percent in its stock price, Banco Itau has shown it is much more than a family business. But with global banking giants knocking at Brazil's door,...

Latin America's top 100 companies.
May 1, 2001... The 2001 Latin CEO 100 is a compilation of the top publicly traded companies based in Latin America, ranked by 2000 revenue. Firms must be listed on their home exchange or through an ADR to be considered for this listing. They may be majority...

Architecture of modernity: as Mexico's banking system and regulatory environment evolve, so do business opportunities -- and a more level playing field. (Marketplace Banking).
May 1, 2001... A SUCCESSFUL BANKING SYSTEM IS ONE whose banks effectively intermediate private-sector savings into private-sector investment, thus providing an impetus to macro-economic growth--while earning lucrative profits. Moody's believes that the...

Exit strategy: Mexican equities are the beneficiaries as investors seek shelter from Argentina's economic and political storm. (Marketplace Equities).
May 1, 2001... MEXICAN EQUITIES ARE GETTING their day in the sun thanks to rattled investors shaving their exposure to Argentine and Brazilian stocks. American depository shares of bellwethers Bancomer, Telmex, Banacci and Walmex have gained an average of...

Acquiring assets: Coutts & Co.'s hiring of nine private bankers from rival Barclays isn't likely to be the last grab for the British bank. (Marketplace Banking).
May 1, 2001... IT MADE A NAME FOR ITSELF AS THE PRIVATE bank to Britain's Royal Family Now Coutts & Co. is shaking off its reserved image and moving aggressively to expand its client base in Latin America. Its first step: hire more bankers. Last month,...

Accessorize! (Technology Gadgets).
May 1, 2001... There are many ways to make your computing easier or more enjoyable. Accessories can increase your productivity and improve your experience during long hours spent at the screen. Some, like specialized security devices, can help in other...

Mexican Antiquarian. (Style of Life Art).
May 1, 2001... Rodrigo Rivero Lake moves in the highest social and political circles of Mexico. If you want something ancient and beautiful, not to mention valuable, he's the man to see. SETTING FOOT IN THE PENTHOUSE apartment of Rodrigo Rivero Lake is...

Eating through Lima. (Style of Life Dining).
May 1, 2001... Our fearless correspondent samples his way through 6,000 years of Peruvian cuisine and finds rich traditions and complex cooking techniques from ancient times still practiced today PERUVIAN CUISINE IS NOT ONLY ONE OF THE most varied,...

King of the road: driving the four-passenger open-top 2001 Hummer is an experience in power. (Style of Life: Automobiles).
May 1, 2001... IN THE FIELD OF SPORT utility vehicles, some stand out more than others. The newer, gargantuan size SUVs, like the Ford Excursion or the Chevrolet Suburban, have taken the SUV from a rugged vehicle to one full of creature comforts, from...

The growth solution: the solution to Argentina's economic crisis lies in stimulating growth, not in restructuring borrowing. (Final Thoughts).
May 1, 2001... WITH THE ECONOmy in prolonged recession, there is no denying that Argentina faces challenging times. A simplistic inspection of the facts has led some observers to infer that the problem lies with the country's debt. They are misguided,...