In what would be the biggest US privatisation yet, the governor of the US colony of Puerto Rico – it’s called a Commonwealth is proposing to sell off the phone company to raise as much as $2,000m to finance education and infrastructure investments. The Puerto Rico Telephone Co is said to be one of the most lucrative phone systems of its size in the world, with an almost all digital network and cellular operations, tremendous market growth potential, and a position of dominance in a fast-growing, stable economy. As well as the Big Three US long-distance companies and some of the Baby Bells, there is likely to be interest from this side of the water, from Cable & Wireless Plc, British Telecommunications Plc and Telefonica de Espana SA – but the asking price may be beyond the resources of any of the potential European contenders.Growth potential is seen in the fact that there are 28 lines per 100 people in Puerto Rico against 41 per 100 in the continental US. The sale is being directed by the Government Development Bank for Puerto Rico, and it has named Goldman Sachs & Co financial advisor.
