Verizon sale stalled

[NewsWhore]

According to Verizon Dominicana's vice president of Communications Eduardo Valcarcel, negotiations with America Movil are stalled because of the technical and legal dispute with the Tax Department (DGII). He explained that it would be very difficult for the transaction to be completed this year, as reported by Listin Diario. The problem is that the tax department says that Verizon should pay US$519 million on capital gains while they operated in the country, money Verizon doesn't think they should pay. Valcarcel says that this could definitely put Verizon's sale to the Mexican company in jeopardy. He indicated that nonetheless, Verizon Dominicana has returned to its normal working pace with its own strategies and expects that negotiations can begin again in 2007, once the court has decided upon the issue. The company says that the impasse with the Tax Department has not affected the company's market and its sales have continued as normal.

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