Cable & Wireless Wins Stake in Panama Firm

Britain’s Cable & Wireless won its bid to buy 49% of Panama’s state telephone company, topping U.S. rival GTE Corp. with an offer of $652 million. The partial sell-off of Intel, which the government has pursued for two years, is considered the crown jewel in Panama’s plan to privatize state companies. The government had hoped for at least $500 million in the sale. Stamford, Conn.-based GTE offered $451.9 million. Intel general manager Juan Porras said the deal will help Panama’s poorest citizens get better access to telephone service. Under the deal, Cable & Wireless pledged to install phones in all communities with more than 150 inhabitants. Panama will hold on to another 49% of the company, and a 2% stake will be held in a trust for workers. The new arrangement will remain in place for five years; after that other private companies will be allowed to participate in the nation’s telecom market, Juan Porras said.