Cabinet Council Approves Sale of Cable & Wireless Shares
Friday, June 15 2012 @ 11:02 AM EDT
Contributed by: Don Winner
Editor's Comment: The government is selling these shares for a reason. Mostly, because they don't want to be holding them anymore. The Cable & Wireless deal was a good investment back at the time when the state owned telephone company was being privatized. Then, C&W had a monopoly on residential telephone services, and there practically were no cellular telephones in the country. But now, 15 years later, the Panamanian telecommunications networks have been largely deregulated so that there are many other companies and service providers who can install a telephone line in your house, like through the cable television provider Cable Onda, for example. And cellular phones are replacing the standard "land lines" to a large extent. So, it makes sense from a business point of view to dump the C&W shares now, while they are still holding their value. But the government can't really come out and explain this very well, because what they are saying is "you can buy this crap, because we don't want it." It would hurt their "tender" and the state might get less money as a result of the sale.