Slim's America Movil Asset Sale Fans Hope For Cheaper Phone Bills
A quick sale of a block of billionaire Carlos Slim's vast telecoms empire to a foreign company may be the fastest path to lower prices, broader coverage and better service for Mexican consumers. Controlling around 70 percent of Mexico's mobile market and more than 60 percent of landlines, Slim's America Movil has been blamed for overcharging consumers for patchy service since he bought a former state-run phone monopoly in the early 1990s.
America Movil, Latin America's biggest telecoms company, will move quickly to put an "attractive" cross-section of the company up for sale it sheds assets to escape tougher regulation of the phone and broadcasting markets in Mexico, billionaire owner Carlos Slim said. The planned sale, announced on Tuesday, would cut the company’s dominant market share in Mexico and could generate billions of dollars.
Billionaire Carlos Slim's America Movil said on Tuesday its board voted to sell off assets to cut its Mexico telecommunications market share below 50 percent in order to avoid tough new regulations designed to curb its long-held dominance of the sector. America Movil, which runs mobile, Internet and fixed-line businesses, said in a statement that its board of directors had decided to sell certain assets to a new company independent of America Movil. It did not specify the assets.
Mexican billionaire Carlos Slim, who already controls America Movil, tightened his grip slightly on Latin America's biggest phone company, according to a U.S. regulatory filing on Thursday that shows two companies controlled by Slim bought more shares.
Mexican billionaire Carlos Slim is buying back the stake AT&T owns in his company, America Movil. Since agreeing to acquire satellite provider DirectTV, the telecom company has become a competitor of America Movil for paid TV customers in Latin America. AT&T has been gradually reducing its holdings in America Movil in the past few years.
arlos Slim's America Movil said on Friday it had authorized the Mexican tycoon's real estate firm Inmobiliaria Carso to buy more than 5.7 billion shares, formerly held by AT&T, equal to 8.27 percent of America Movil's stock. America Movil shares extended gains to 6 percent, a more than two-month high, after the announcement.
Carlos Slim's America Movil said on Monday it will take control of just over half of Telekom Austria in a $1 billion buyout offer, giving the Mexican billionaire a base to build up his presence in European telecoms. America Movil, which already owns around 27 percent of the company, said it would acquire an additional 23.47 percent of Telekom Austria's shares.
America Movil spokesman Arturo Elias said on Wednesday the Mexican telecoms company plans to divest assets as quickly as possible to escape tougher regulation, and it hopes to sell to a single buyer. The company controlled by billionaire Carlos Slim announced on Tuesday that it was ready to sell assets to cut its market share in Mexican telecoms below 50 percent and escape regulations that apply only to dominant players.
America Movil could become the next breakup candidate. America Movil's owner, Carlos Slim, will increase his interest in America Movil to over 50% by buying back the rest of the stake that AT&T holds in his company. Since his announcement, shares of the TV provider surged 5%. But for anyone who is shorting the name, Macquarie warns that might be risky right now. They believe America Movil could go private or break up.
Mexico's telecommunications regulator has found that Carlos Slim's fixed-line telephone company, Telmex, and pay-television provider Dish Mexico have undisclosed economic links that might breach anti-trust rules. Slim dominates Mexico's phone and Internet markets through Telmex parent America Movil, but the terms of Telmex's concession prevent the company from offering TV.
MEXICO CITY (Reuters) - America Movil, Latin America's biggest phone company, said on Wednesday it would not proceed with a plan to boost its stake in KPN after the Dutch telecom's foundation blocked the Mexican company's bid. America Movil's shares soared more than 6 percent on the news.
It seems as if a wide-ranging new set of anti-monopoly regulations aimed at busting up his dominance in Mexico’s telecom market has whetted Mexican billionaire Carlos Slim Helú’s known appetite for new investments. In fact in June the world’s second richest man went out shopping.
Carlos Slim, Latin America's richest man, said he thinks Mexico's economy will start to grow at a faster pace next year after overcoming a sluggish past couple of years. The Mexican economy grew by just over 1 percent last year and the government in May cut its forecast for 2014 to 2.7 percent. Interest rates are now at a record low of 3 percent. Slim tells Reuters "Last year's growth was low, I think that this year it will be relatively low too, but I think next year will be much better.