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Digicel goes for Panama licence(Sunday Business Post Via Thomson Dialog NewsEdge) Digicel, the Caribbean mobile operator owned by entrepreneur Denis OBrien, is in the running for a mobile-phone licence in Panama. If Digicel is successful in its bid, it will mark the latest phase of the firms expansion. It already has more than four million subscribers in 22 markets in the Caribbean. The firm is facing competition in its Panama bid from America Movil, which is based in Mexico. Digicel is currently bidding to enter five new markets, either by winning mobile licences or acquiring existing operators. The firm is expected to launch services in Guatemala this year, after it bought a company that holds a licence in that country last year. It has also been linked to expansion into Honduras and Costa Rica. The companys rate of growth will determine its future funding strategy, including the possibility of a stock market listing in New York, which could raise more than$500 million. It is understood that Digicel has done the groundwork for a stock market listing and could move quickly if it feels the time is right to go public. While industry sources said the company could go public as early as this month, a listing in the middle of the year seems more likely. In recent interviews in Time magazine and USA Today, OBrien said that Digicel would enter the US market this year with an interesting proposition that would rival the existing operators. A move into the highly-competitive US market would require significant funding. Industry sources said that Digicel could be valued at up to$3 billion in a stock market listing. OBrien owns almost 90 per cent of the company. Digicel could also be a takeover target for a larger operator, such as Vodafone or America Movil. Last week, Digicel and Vodafone signed a three-year roaming partnership. America Movil is owned by Mexican telecoms billionaire Carlos Slim Helu, who is the worlds fourth-richest man. He has been aggressively expanding his telecoms interests in South America. Copyright 2007 Post Publications Ltd, Source: The Financial Times Limited |