The hypothesis that Net might go private has been raised by some analysts, but there are several counter-arguments. Net has undertaken to register with Bovespa?s New Market as a Level II issuer (high standards of governance and disclosure); BNDES almost never invests in companies that don?t trade publicly because of the difficulty of transferring its holdings when appropriate; it lacks the available cash to buy back all outstanding shares, even though the price is very cheap; the capital market is already leery of Net (like all Brazilian companies) and would shy away even more if it went private. Net?s market cap is currently just over 110 million Brazilian Reals, aside from debts and the capitalization of almost 1.2bn BRL to be concluded this month. Net?s investor relations department hasn?t answered our requests for comment on these speculations.
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