Case | HBS Case Collection | August 1992 (Revised June 1993)

Compania de Telefonos de Chile

by W. Carl Kester, Enrique Ostale and Charles McHugh La Follette


The newly privatized Chilean telephone company, Compania de Telefonos de Chile (CTC) must raise substantial new funds externally in order to finance its expansion program. This task is complicated by Chile's small, illiquid capital markets and the skeptical view of Latin American borrowers held by investors outside of the region. CTC's chief financial officer must determine if listing American Depository Receipts (ADRs) on the New York Stock Exchange is a viable financing option for the company.

Keywords: Capital Markets; Financing and Loans; Managerial Roles; Privatization; Expansion; Telecommunications Industry; South America; Chile;


Kester, W. Carl, Enrique Ostale, and Charles McHugh La Follette. "Compania de Telefonos de Chile." Harvard Business School Case 293-015, August 1992. (Revised June 1993.)