Experts: AOLA Capital to Last until 1Q01

The US$200mn raised by Miami-based AOL Latin America (NASDAQ: AOLA) in an IPO this month will last the company until 1Q01, according to industry experts quoted in O Estado de Sao Paulo (Brazil). If AOLA had raised the US$425mn it initially hoped for, the capital would have lasted until 1Q02, the experts speculated. The company originally planned to price its 25 million shares at US$15-17, but reduced the figure to US$8 due to weak demand. AOLA business development VP Eduardo Hauser said the company decided to proceed with the transaction regardless, ?(in order to) capitalize our planned expansion, and keep the executive team.? AOLA had commitments to its staff in terms of stock option plans, he continued. ?We needed to keep our promises to them (staff) and to the market in general.? AOLA is a joint venture between US-based AOL (NYSE: AOL) and Venezuela's Cisneros Group. Brazilian bank Itau will also take a 12% stake in the company. AOLA currently operates in Brazil, Mexico and Argentina. The company has strong competition in all three markets, primarily from Brazil-based UOL (www.uol.com.br), Spain-based Terra Networks (NASDAQ: TRRA) (www.terra.com), Mexico?s Telmex (NYSE: TMX) (www.telmex.com.mx) and Argentine Ciudad Internet (www.ciudad.com.ar).