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

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

The power of B2B. (Letter from the Editor).
September 1, 2000... Over the past two years, the headlines about Internet investment in Latin America have been mostly about the mass market. The CEOs of regional portals like StarMedia and Patagon.com have become virtual celebrities. Trans-Latin service...

Telefonica. (Portfolio: Regional).
September 1, 2000... Telefonica's new chairman Cesar Alierta has appointed the company's former finance director Fernando Abril-Martorell as the new CEO, replacing Juan Villalonga, who resigned in July Alierta also has appointed Joaquim Agut, CEO of General...

Uniao de Bancos Brasileiros SA (Unibanco). (Portfolio: Regional).
September 1, 2000... Planning to create business-to-business e-cornmerce portals in Mercosur, Uniao de Bancos Brasileiros SA (Unibanco) and Argentina's Grupo Financiero Galicia have joined Portugal Telecom's PT Prime and Tradecorn in a US$100 million venture.

Repsol YPF. (Portfolio: Regional).
September 1, 2000... Repsol YPF, which began producing oil in Brazil for the first time, plans to invest US$12.4 billion in Latin America to increase oil and gas production 55 percent by 2005. The company will upgrade refining operations, develop recently...

The government announced a 5-year, US$21 billion infrastructure plan. (Portfolio: Argentina).
September 1, 2000... The government announced a 5-year, US$21 billion infrastructure plan, which will include highway, bridge, water, sewer and other urban construction projects. Seventy percent of the money is expected to come from concessions to the private...

Aerolineas Argentinas. (Portfolio: Argentina).
September 1, 2000... The Spanish government agreed to invest US$208.5 million to keep Aerolineas Argentinas from bankruptcy until a mid-September shareholders meeting. The Spanish holding company SEPI, which owns part of the ailing airline--along with Iberia...

Perez Gompanc. (Portfolio: Argentina).
September 1, 2000... Perez Gompanc has announced it will double the number of its Latin American gas stations and spend more money on oil exploration, at a cost of at least US$900 million by year-end 2001.

AT&T Latin America and FirstCom Corp. (Portfolio: Argentina).
September 1, 2000... AT&T Latin America and FirstCom Corp. of the US announced they will invest US$500 million in their recently acquired Keytech LD, creating some 2,000 new jobs as they expand Keytech's broadband fiber infrastructure, Internet protocol...

Petroleo Brasileiro SA (Petrobras). (Portfolio: Brazil).
September 1, 2000... Petroleo Brasileiro SA (Petrobras) sold US$4.1 billion worth of stock in a Brazilian and US public offering of more than 25 percent of the company The money will go to the current owners--the Brazilian government--whose share has been reduced...

Duke Energy and Petrobras. (Portfolio: Brazil).
September 1, 2000... US-based Duke Energy and Petrobras have agreed to construct two US$70 million, 110-megawatt thermoelectric plants, one in Brazil and one in Bolivia. Both will supply the Brazilian market,

Brasil Telecom. (Portfolio: Brazil).
September 1, 2000... Ending months of negotiations, Brasil Telecom agreed to buy TeleBrasilSul, main owner of Companhia Riograndense de Telecommunicacoes (CRT), from Telefonica, at a price of US$800 million. Telefonica was forced to sell its CRT stake when it...

Sao Paulo state. (Portfolio: Brazil).
September 1, 2000... Sao Paulo state will get its first vehicle cargo terminal. Residents and businesses in the state are the country's principal consumers of vehicles and vehicle parts. Grupo Goimex will spend US$100 million to construct a multi-use cargo...

Tele Norte Leste Participacoes SA (Telemar). (Portfolio: Brazil).
September 1, 2000... Tele Norte Leste Participacoes SA (Telemar), Brazil's largest fixed-line phone company announced it would invest more than US$1.66 billion this year, improving its fixed-line network and offering new services. That will be followed next year...

Empresa Brasileira de Aeronautica SA (Embraer). (Portfolio: Brazil).
September 1, 2000... Empresa Brasileira de Aeronautica SA (Embraer) has launched a US$350 million Brazilian stock market and American depositary share (ADR) offering; the proceeds will be used to develop a new regional jet family In a deal worth up to US$3...

Industrias Kiabin. (Portfolio: Brazil).
September 1, 2000... Latin America's largest pulp and paper company, Industrias Kiabin, will expand its packaging business with the purchase of Igaras Papeis e Embalagens for US$398 million in cash and US$112 million in debt.

Aracruz Celulose. (Portfolio: Brazil).
September 1, 2000... Aracruz Celulose announced it will spend US$923 million in projects that include the construction of a new pulp production line and purchase of a US$105 million stake in the Veracel pulp mill project.

Unibanco. (Portfolio: Brazil).
September 1, 2000... Unibanco has nearly doubled its Brazilian branch network with the purchase of Banco Bandeirantes from Caixa Geral de Depositos (Portugal) in a US$663 million stock swap; Caixa will own 14.8 percent of Unibanco.

Telefonos de Mexico and Grupo Carso. (Portfolio: Chile).
September 1, 2000... Carlos Slim Helu, owner of Telefonos de Mexico and Grupo Carso, has taken a 40 percent stake in Chilean Internet incubator iLatin Holdings for US$14 million. Silm's Internet holdings include Telmex subsidiary Technology & Internet.

Anglian Water. (Portfolio: Chile).
September 1, 2000... The United Kingdom's Anglian Water has acquired the remaining 72 percent of Aguas Puerto from Enersis for US$136.6 million. The purchase bumps Anglian's overseas holdings ahead of its UK holdings. Enersis is the Chilean unit of Spanish...

BellSouth. (Portfolio: Colombia).
September 1, 2000... BellSouth acquired Cocelco in a US$414.5 million merger, increasing its stake in Celumovil (partly owned by Cocelco) to 66 percent from 50.3 percent. The remaining 34 percent is owned by Valores Bavaria. BellSouth is now the largest cellular...

Aeropuertos Dominicanos XXI (Aerodom). (Portfolio: Dominican Republic).
September 1, 2000... Aeropuertos Dominicanos XXI (Aerodom) will invest US$200 million to upgrade four airports it won concessions for this year. Aerodom is made up of Canada's Vancouver airport authority and Ogden of the US.

Crestar Energy. (Portfolio: Ecuador).
September 1, 2000... Crestar Energy of Canada has expanded into Latin America with the purchase of CMS Oil & Gas Ecuador for US$95.9 million.

MultiHolding Corp. and BellSouth. (Portfolio: Guatemala).
September 1, 2000... Partners MultiHolding Corp. and BellSouth of the US will invest a total of US$200 million in BellSouth Guatemala through 2001. US$100 million has already been spent on equipment, new networks, technology upgrades and licenses.

The Inter-American Development Bank. (Portfolio: Mexico).
September 1, 2000... The Inter-American Development Bank will finance the US$457 million Monterrey thermoelectric project in Nuevo Leon. The IDB's largest-ever private-sector loan will help ease an anticipated energy crunch.

Grupo Flektra. (Portfolio: Mexico).
September 1, 2000... Grupo Flektra will sell its 19 percent stake in TV Azteca to Ricardo Salinas Pliego, the largest shareholder in both companies. The move comes after long-time criticism of Elektra's TV Azteca investment.

Pepsi-Gemex SA. (Portfolio: Mexico).
September 1, 2000... The country's largest Pepsi bottler, Pepsi-Gemex SA, will buy bottler Embotelladores del Valle de Anajuac SA (Emvasa) for US$81 million, pending government approval.

McDonald. (Portfolio: Mexico).
September 1, 2000... McDonald's announced plans to invest US$300 million and create 8,500 jobs in the country over the next three years; this year the company will invest US$5 million, creating 200 jobs.

Grupo Financiero BBV-Bancomer. (Portfolio: Mexico).
September 1, 2000... Mexico's first wireless phone-accessible financial portal has been launched by Grupo Financiero BBV-Bancomer, giving clients wireless access to their account balances. Eventually, customers will be able to transfer funds and pay bills via...

The government has announced it plans to privatize all of the country's international airports. (Portfolio: Paraguay).
September 1, 2000... The government has announced it plans to privatize all of the country's international airports, hoping to cut state spending while upgrading the facilities.

TeleCable. (Portfolio: Peru).
September 1, 2000... Cable operator TeleCable plans to invest US$170 million over the next five years; its client base is expected to grow from 15,000 to 25,000 by the end of this year.

Germany's Siemens. (Portfolio: Venezuela).
September 1, 2000... The government has signed a US$150 million contract with Germany's Siemens to build 6.3 kilometers of track and six stations in phase one of the planned 60-kilometer Maracaibo subway network.

The Emerging Market Access Index, 2000.
September 1, 2000... The Emerging Market Access Index, 2000 (Scale of 1 to 100) Argentina 66 Brazil 50 Chile 83 Colombia 64 Costa Rica 64 Ecuador 48 Guatemala 66 Mexico 68 Peru 75 Venezuela 72 ...

Latin America vs. the US Fixed & Mobile Telecommunications.
September 1, 2000... Latin America vs. the US Fixed & Mobile Telecommunications: 1999 2000 * 2001 * 2002 * 2003 * Total LA Fixed Lines (millions) 53 56 59 62 65 LA Fixed-Line Penetration ...

Mexico exports. (Bulletin Board).
September 1, 2000... * Mexico's rank as an exporter: 8th largest in the world (counting the European Union as one country) * Predicted growth in exports from Mexico by 2003: 64 percent (to US$224 billion) Source: Financial Times, Ciemex-Wefa

Future Forest. (Environment).
September 1, 2000... Futuro Forestal, a German-Panamanian company, has a new way to raise trees and enrich the environment. The 6-year-old firm is replanting 500 hectares of exhausted grazing land in western Panama with a mix of 15 tree species. The key: Only 60...

Online learning. (Corporate Education).
September 1, 2000... The days of sending employees to school offsite soon may be over. Two different groups recently announed online learning and degree programs in Spanish and Portuguese. Cisco Systems of Spain, IBM Spain and Telefonica Media plan to invest...

Bacterial benefits. (Mining).
September 1, 2000... Bacteria may soon be mining copper. At least that is what Chile's state copper company Codelco and British mining and metals house Billiton PLC hope. The two corporations have formed Alliance Copper Limited, a 50150 joint venture to develop...

Citrus success: in less than a decade, CEO Fernando Oris de Roa has increased sales for lemon grower San Miguel by more than fourfold. (Strategies).
September 1, 2000... IN 1993, WHEN FERNANDO Oris de Roa became CEO of San Miguel, the Argentine company was already a large lemon producer, with revenue of US$32 million. This year, the company is the world's largest lemon exporter; sales are expected to top...

The room boom: Brazil has never lacked for five-star hotels. But the middle market, especially for business travelers, has been ignored. Now hoteliers like Chieko Aoki are changing that. (Strategies).
September 1, 2000... AS A MAJOR BUSINESS destination in South America, Brazil offers top hotels carrying the world's major brands, such as Sol Melia, Renaissance, Sheraton and Inter-Continental, as well as local top-tier luxury brands, like Maksoud. They're in...

Food fight: after a recent capital influx and subsequent merger, Carulla Vivero's new CEO Samuel Azout gets aggressive with Colombia's No. 2 grocery retailer. (Strategies).
September 1, 2000... THESE ARE NOT GOOD days for Colombian grocers. With the national economy shrinking about 4.5 percent last year and retail sales feeling the pinch of reduced spending power, the competition for market share has intensified. Although the...

Media redux: despite high illiteracy rates, Bolivian media magnate Gonzalo Canelas is pushing old-fashioned newspapers. And a few Internet cafes. (Strategies).
September 1, 2000... IN A NATION WHERE HUGE portions of the population neither have electricity nor read Spanish, what established businessman would place his bet on cutting edge technology? Bolivian newspaper publisher Gouzalo Canelas. Canelas is president...

High flyer: in the highly competitive world of air cargo, sometimes you have to come in under the radar to come out on top. (Strategies).
September 1, 2000... CALL IT A FAMILY AFFAIR. Aerotransportes Mas de Carga, known as Mas Air, was founded as a family business in 1992 after CEO Luis Sierra's father reached out to a cousin in Chile for help. The Sierras saw an opportunity with Mexico's opening...

Trading places: G. Accion holds the largest office real estate portfolio in Mexico, but that hasn't stopped CEO Luis Gutierrez from shifting gears to focus on industrial properties. (Strategies).
September 1, 2000... WHEN NAFTA WAS implemented, and the peso crisis hit, Luis Gutierrez Guajardo didn't just see a future burgeoning with trade. He saw a future that needed warehousing and industrial space, particularly for large multinationals. And in six short...

Bridging the digital divide: Grupo Abril's new president remakes the publishing giants corporate culture and prepares to take the company to the next level in the new economy.
September 1, 2000... Ophir Toledo's desk is so clutter-free that it's hard not to notice the shiny aluminum caddy off to one side, holding 30 or so yellow, blue, green, black and orange pencils. Each pencil is sharpened, and each bears the name of a different...

The next generation: with a family legacy of success behind him, CEO Dionisio Garza Medina is determined to keep his clan's Grupo Alfa conglomerate on a growth fast track.
September 1, 2000... During the last few decades, the transformation of Monterrey from a quiet regional capital to the glittering epicenter of Mexican industry has been nothing less than astonishing. The skyline is a testament to the city's legendary business...

Fabric of success.
September 1, 2000... Thinking outside of the box has given Fernando Capellan the thread from which to weave the Caribbean's largest textile company. Bolstered by a new trade deal, his Grupo M is poised for more fast-track expansion. Wearing an open-necked...

Housing hunger: Southern Cone countries have a serious housing shortage. The plus side: distinct opportunities for investors. (Marketplace: Real Estate).
September 1, 2000... IN THE RUSH TO MODERNIZE, the Southern Cone countries of Argentina, Brazil and Chile seem to have ignored one key segment of the economy: the residential housing market. All three countries are just now beginning to address a chronic shortage...

The last one standing wins: despite unfavorable press and stiff competition, AOL Latin America is far from throwing in the towel. (Marketplace: Internet).
September 1, 2000... IF AOL LATIN AMERICA IS IN trouble, no one has bothered to tell Gustavo Cisneros. The chairman of the Cisneros Group, which partnered with AOL to create the Latin American spin-off of the dominant US Internet service provider, was in Buenos...

Factory town: it is rare that a single company can unilaterally change the trade flows in a country, but Intel has done just that for Costa Rica. (Marketplace: Trade).
September 1, 2000... IN THE OLD DAYS, CENTRAL America's economies were so dominated by United Fruit and other US-based agribusiness companies that these impoverished countries came to be known as "banana republics." Today, at least one nation--Costa Rica--is...

B2B nexus: big business in Latin America stakes out its slice of the business-to-business internet marketplace. (Technology: IT Solutions).
September 1, 2000... WEBSTER'S DICTIONary defines "nexus" as a link or connection. And that is precisely what four of the largest Latin American companies want to do: connect Latin American businesses to other businesses with a new business-to-business portal...

www.salutia.com. (Your Health and the Financial News).
September 1, 2000... What it is: Health news, discussion groups and information, in Spanish and Portuguese. What it promises: Health information, news and community, customized country by country. What it delivers: Information about a large variety of...

www.bloomberg.com. (Your Health and the Financial News).
September 1, 2000... What it is: Up-to-the-minute news about worldwide business and financial markets. What it promises: The top daily headlines and stories from Bloomberg's financial news service, for free. What it delivers: Four sites are of interest,...

Portable power. (Technology).
September 1, 2000... Frequent travel is a requirement for many executives, and it can become exhausting. Spending time on a plane can be boring, hotel rooms can be uncomfortable, and lugging around computer equipment can be--quite literally--a pain. The right...

Confessions of a jet setter: corporate jets aren't just for the working rich. They can be cost-effective and improve efficiency -- in addition to being just plain convenient and fun. (Style of Life: Corporate Travel).
September 1, 2000... THE ALLURE OF A CAREER IN INTER national management usually includes traveling the world, with the idea that every day can bring a different challenge. Heavy international travel is simply a by-product of doing business in Latin America. ...

Little houses on the Caribbean: perched on a 300-foot bluff with the Atlantic Ocean crashing on the rocks below, Las Casitas Village offers the service of a luxury hotel with the intimacy of a family resort. (Style of Life: Travel).
September 1, 2000... ON THE NORTHEAST COAST OF PUERTO Rico, on a cliff overlooking the Atlantic Ocean, sits a small enclave of pastel-colored, colonial-style villas. It's a place where elitism comes to life with the ultimate in privacy and luxury Las Casitas...

Matron of the arts: one person can't change the world? Don't tell that to the woman affectionately known as Milu, one of Brazil's leading arts patrons. (Style of Life: The Arts).
September 1, 2000... MARIA DE LOURDES Egydio Villela, better known as Milu, was born into one of Brazil's most powerful families. She is the controlling shareholder of the Itausa Group, which owns Brazil's second-largest private bank, Banco Itau. But Milu has not...

Antiquarian repository: Pedro Correa do Lago has more than 80,000 tomes and antiquities for sale. Whether its Tolstoy or the nation's royal family, he has a piece of history for everyone. (Style of Life: The Arts).
September 1, 2000... TOWARD THE END OF HIS TENURE AS Argentina's president, Carlos Menem came across a letter of Juan Domingo Peron's in which the populist hero blasts his country's military. The interesting thing is that Peron's letter wasn't found in official...

Business network: CEAL, now a decade old, continues to move forward as a vibrant link uniting Latin American business interests. (Final Thoughts).
September 1, 2000... MY EXPERIENCE WITH the international sector, until the 1990s, had been limited mostly to investment banking and venture capital, trying to promote Brazil as a good bet. This huge, autonomous economy with its omnipresent state, had been spared...

Electric frontier. (Portfolio: Peru).
September 1, 2000... The government will spend US$90 million this year to expand the "electric frontier" and deliver electricity to some 400,000 people in the Amazon and other poor regions. Another US$180 million will be spent over the next three years to...

Executives in demand. (Bulletin Board).
September 1, 2000... * Increase in Latin America search-firm commissions in 1999: 30% * Increase in salaries for upper management in high-tech fields in Latin America in the past two years: 50% Source: Los Angeles Times

Economic growth. (Bulletin Board).
September 1, 2000... * Value of US-Latin America trade in 1999: US$310 billion * Value in 1994: US$170 billion * Predicted economic expansion in Latin America for 2000: 4% * Economic expansion in 1999: 0.4% * Predicted 2000 inflation rate: 10%...

Sweet tooth. (Bulletin Board).
September 1, 2000... * Tons of refined sugar imported by Chile in 1999: 224,775 * Tons imported in 1998: 199,608 * Increase: 12.6% Source: Reuters

Costly taxes. (Bulletin Board).
September 1, 2000... * Cost of social benefits taxes to companies in Brazil: 70% to 800/0 of total labor costs * Cost in Argentina: 33% of total labor costs * Cost in Mexico: 24.45% * Cost in Chile: 0.95-3.4% * Average income tax rate in Brazil:...

Bankers mistrust. (Bulletin Board).
September 1, 2000... * Percent of Ecuadoreans who do not trust the country's financial system: 25% * Percent who have "a little or some confidence" in the financial system: 53% * Percent who maintain a bank account: 63% Source: Datanaliais Survey...

Regional poverty. (Bulletin Board).
September 1, 2000... * Percentage of Latin American and Caribbean population classified earning less than US$2 a day: 33% Source: Inter-American Development Bank

Common currency for Mercosur. (Bulletin Board).
September 1, 2000... * Portion of Argentines who dislike the idea of a common Mercosur currency: 60% Source: Wall Street Journal, Gallup Argentina