Steps Towards Privatisation For Colombia Telecom

The Colombian finance minister sent a proposal to Colombia's congress that could allow Colombia Telecommunicaciones (Telecom) to merge with other companies in the sector. The move comes after a financial weakening of the company, following the continued loss of fixed-line subscribers. It is expected that the merger will be with Telefónica , which currently owns a 52% stake in the company. Both stakeholders would inject capital into the company in proportion to their stakes, with an eye to a merger later. Telecom has financially weakened in recent years, which has created an enormous risk in terms of the company's ability to meet pension payments and other obligations. CFW believes the move would produce benefits for the government, Telefónica and for customers, and is a necessary transformation in order for the company to remain profitable.

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