Brazilian communications provider Global Village Telecom repurchased a 2% stake from RSL Communications, which is in receivership.
GVT runs a communication network in southern Brazil. It was established by a consortium of Israeli firms, including Magnum venture capital, Discount Investment Corporation, and Clal Industries. Merrill Lynch also owns a 16% stake in the company.
GVT reported $14 million revenue from operations in the third quarter and a net loss of $46 million. In recent months its shareholders, excluding Merrill Lynch, infused $74 million to keep it running.
Most of the loss was due to $29 million financing costs.