The troubles of Alan Bond’s Bond Corporation Holdings Pty Ltd has brought a great leap forward for Telefonica de Espana SA’s ambitions in South America. The Hong Kong-based Bond Corp International Ltd agreed to sell its 53% controlling stake in Compania de Telefonos de Chile SA to Telefonica for $391m, Chile’s local telephone service company. Telefonica was one of the losing bidders when the stake in the telephone utility was put up for sale, but won a 10% consolation stake in Empresa Nacional de Telecommunications de Chile, the long distance and international operator, which cost it $27.2m. It is still in for a 40% stake in the Argentine phone company, but that is mired in politics (CI No 1,367).
