Globo to sell SIC stake

Brazilian media giant suffering rev decline

By MARTIN DALE

LISBON -- Brazilian media giant Globo is selling its 15% stake in Portuguese private broadcaster SIC to reduce its debt as it continues to retrench internationally.

Globo, Latin America's biggest media company, suffered a 9.5% fall in revenues to $2.9 billion and chalked up a whopping $676 million loss in 2001.

One of Globo's former crown jewels, SIC has its own problems.

Launched in 1992, the broadcaster had secured a 50% TV audience share by 2000, but has now been displaced by rival TVI, thanks to "Big Brother" and homegrown soaps.

SIC has been gaining ground on TVI recently, but nonetheless suffered a 14% drop in revenues over the last 12 months.

SIC's majority shareholder, the Impresa Group, helmed by former Portuguese prime minister Francisco Pinto Balsemγo, recorded a $14 million loss in the first half of 2002. Its shares slumped 4.4% to an historic low of $1.55 per share in the wake of news of Globo's sale talks.

SIC's sole consolation is that it has succeeded in extending its exclusivity deal for Globo telenovelas until 2007.

The sale is being managed by Portuguese bank Finantia.