America Movil Asset Buyer Needs Independence Beyond Finances

October 22, 2014

10/22/14 Bloomberg 

using smartphoneSuitors for America Movil SAB (AMXL)’s assets in Mexico will have to prove they are completely independent — beyond just making sure there are no direct financial ties, according to the president of the country’s telecommunications regulator. Historical relationships and personal ties will also need to be examined, said the official, Gabriel Contreras. That may potentially put the onus onAT&T Inc. (T), which America Movil has contacted about buying parts of its Mexican mobile and landline units, people with knowledge of the matter said last month.

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Mexico Exchange Chief Executive Tellez Resigns as Offerings Drop

October 22, 2014

10/21/14 Bloomberg 

financeLuis Tellez is stepping down as chairman and chief executive officer ofMexico’s stock exchange at the end of the year. Bolsa Mexicana de Valores SA didn’t name Tellez’s replacement in a filing today or say what his plans would be after he leaves. He didn’t immediately respond to a request seeking comment sent through the bourse’s press office.

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Wal-Mart’s Mexico Chief to Step Down

October 20, 2014

10/17/14 Wall Street Journal

Photo by Flikr user elmadaThe Mexican unit of Wal-Mart Stores Inc. said on Friday its chief executive planned to step down next year, as Wal-Mart struggles to boost sales and customer traffic in one of its largest international markets. Scot Rank, who has been Wal-Mart de México’s CEO for five years, will assume the role of vice chairman of the board of directors at Walmex, as the company is known. Walmex said it will soon announce his replacement. Mr. Rank’s tenure at the helm was burdened by allegations in 2012 that the retailer had bribed public officials to speed permits for new-store openings in Mexico. The Justice Department investigations into those allegations continue.

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Citigroup’s Mexico Unit Fined $2.2 Million Over Loan Controls

October 16, 2014

10/15/14 Bloomberg

finance-market_dataCitigroup Inc. (C)’s Mexico subsidiary was fined 30 million pesos ($2.2 million) by the nation’s bank regulators, which faulted the firm for inadequate controls and making loans that violated lending rules. The regulator known as the CNBV announced the penalty in an e-mailed statement today. Banamex said in a separate statement that it paid the sanction and is working on corrective measures. Citigroup, the third-largest U.S. bank, said in February that it had discovered the Banamex unit had made bogus loans to Oceanografia, forcing the New York-based company to cut previously reported earnings for 2013 by $235 million. Banamex had advanced funds to Oceanografia secured by promises that state-run Petroleos Mexicanos would repay the bank for work the oil-services firm performed.

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Mexico’s Peso Tumbles to Weakest Since February on U.S. Outlook

October 16, 2014

10/15/14 Bloomberg News

Mexican pesoMexico’s peso fell to the weakest since February as concern that the global economy is slowing fueled a selloff in emerging-market currencies. The currency dropped 0.6 percent to 13.5315 per dollar today in Mexico City, the weakest on a closing basis since Feb. 3. Yields on fixed-rate peso bonds due in 2024 dropped five basis points, or 0.05 percentage point, to 5.76 percent, according to data compiled by Bloomberg. The peso’s drop was the second-most among major currencies. A report showed retail sales in the U.S., which accounts for about 80 percent of Mexico’s exports, fell a greater-than-expected 0.3 percent in September. An index of manufacturing in the New York area fell this month to its lowest since April.

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Atco Seeks Partners for Mexico Projects in Energy Opening

October 16, 2014

10/15/14 Bloomberg

Energy -electricity_transmission_linesAtco Ltd. (ACO/X) is looking for partners in Mexico as it positions itself to tap the $5 billion in pipeline and power projects to be offered as part of the country’s energy industry opening. The Calgary-based company has been in talks with as many as eight prospective partners as state-owned Comision Federal de Electricidad prepares to auction projects through 2015, James Delano, who heads Mexican operations, said in an interview yesterday. “We didn’t come here to work alone,” Delano said at his Mexico City office after Atco agreed to build a $50 million pipeline in its first venture in the country. “It’s important for us to work with someone who knows the country well.”

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Mexico’s telecoms market seeks new signal

October 16, 2014

10/15/14 Financial Times

carlos slim

Mexico’s telecoms sector, for so long largely the preserve of Carlos Slim’s América Móvil, is in flux. Both Mr Slim and Ricardo Salinas, who bought out television powerhouse Televisa’s share in Iusacell, the country’s third-biggest mobile operator, are looking for new investment. Spain’s Telefónica, the second-biggest mobile company in Mexico with about a 20 per cent market share, hopes the merry-go-round will help it boost its muscle in a country where revenues lag most of its businesses elsewhere in Latin America. The shake-out is the result of tough new telecoms regulations intended to end América Móvil’s stranglehold on the sector. Mr Slim’s fixed-line Telmex service has 80 per cent market share while his mobile business Telcel has 70 per cent.

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