News Brief

Telefonica Bids For Terra Lycos

Dow Jones has reported that Spanish telecommunications giant Telefonica SA Wednesday launched a takeover bid for its troubled Internet unit Terra Lycos SA. Telefonica currently has a 38.6% stake in Terra Lycos, but competes with it in providing high-speed Internet access in Spain. Telefonica is offering EUR5.25 in cash for each Terra share, and will pay out up to EUR1.73 billion in the bid. Terra has said it will continue losing money until 2005. Its earnings have been hit by the downturn in advertising in the U.S., where it owns the Lycos group of Web sites, and by the fall of Latin American currencies.