NewsWhore
07-14-2006, 03:10 PM
A recent major advertising campaign begun by Verizon may be a clue that the sale of the country's leading telecom company to the leading Mexican telecom company has been called off. Higher than expected fiscal and labor liabilities are believed to be the reasons that could keep Verizon in the DR. Reportedly, a large number of Mexican executives who had come for the buyout left the country this week.
As reported in the Listin Diario, the Tax Department is claiming payment of US$350 million to US$500 million in taxes from Verizon Dominicana, which corresponds to 25% of capital gains for the sale of the company's shares to Mexican company Telmex.
Listin Diario reports that the tax authorities are claiming this payment as a requisite for completing the sale transaction. The Tax Department has notified the Dominican Institute of Telecommunications (INDOTEL) of its opposition to the approval of the sale transaction of Verizon to Telmex until the state is paid all taxes due for the operation.
America Movil agreed to purchase 100% of Verizon Dominicana for US$2.062 billion. Verizon is the oldest and largest telecommunications company in the country and has more than 752,000 subscribers to landline telephone systems and 1.8 million wireless cellular subscribers in 2005. The company is of foreign capital and was established in the DR in 1930. It offers mobile and fixed telephone services, as well as Internet service to more than 2.7 million clients.
Link To Original Article (http://www.dr1.com/index.html#13)
As reported in the Listin Diario, the Tax Department is claiming payment of US$350 million to US$500 million in taxes from Verizon Dominicana, which corresponds to 25% of capital gains for the sale of the company's shares to Mexican company Telmex.
Listin Diario reports that the tax authorities are claiming this payment as a requisite for completing the sale transaction. The Tax Department has notified the Dominican Institute of Telecommunications (INDOTEL) of its opposition to the approval of the sale transaction of Verizon to Telmex until the state is paid all taxes due for the operation.
America Movil agreed to purchase 100% of Verizon Dominicana for US$2.062 billion. Verizon is the oldest and largest telecommunications company in the country and has more than 752,000 subscribers to landline telephone systems and 1.8 million wireless cellular subscribers in 2005. The company is of foreign capital and was established in the DR in 1930. It offers mobile and fixed telephone services, as well as Internet service to more than 2.7 million clients.
Link To Original Article (http://www.dr1.com/index.html#13)