September 17, 2014
AT&T Inc. (T) Chief Strategy Officer John Stankey said Mexico is poised for investment, and that he sees a lot of options, both near-term and long-term, in Latin America. Stankey’s comments at an investor conference were the clearest sign yet that the largest U.S. phone-service provider is interested in expansion into Mexico, where America Movil SAB (AMXL) plans to sell assets to invite a new competitor into the market. AT&T has also looked at Europe for potential investments, Stankey said. He didn’t mention any specific plans to expand in either region.
September 17, 2014
09/16/14 The Wall Street Journal
A top AT&T Inc. executive said the company is open to acquisitions in Mexico, where the telephone giant controlled by former partner Carlos Slim is planning to sell assets. América Móvil has said it would sell off parts of its sprawling operations to cut its market share to below 50% from about 70% to avoid a regulatory crackdown, creating a rare opening for an acquirer to get a foothold in the country.
July 23, 2014
America Movil SAB is planning a spinoff of its wireless towers in Mexico as the company studies how to break apart its wireless and landline phone operations in the country, where tougher regulations are cutting into profits.
A spinoff will better reflect the value of the towers, which can be rented to competitors, Chief Executive Officer Daniel Hajj said today on a conference call. The company continues to work on a breakup plan to present to Mexico’s telecommunications regulator, which can revoke penalties against the carrier if its market share falls below 50 percent.
July 22, 2014
America Movil SAB (AMXL) beat second-quarter estimates for adjusted earnings and sales as growth outside of Mexico shone through the gloom of tougher regulations in its home market, where it lost 2 million subscribers.
Billionaire Carlos Slim’s mobile-phone carrier said profit rose 2.4 percent from a year earlier to 66.6 billion pesos ($5.1 billion), leaving out interest, taxes, depreciation and amortization. That compared with the average estimate of 65.8 billion pesos of nine analysts compiled by Bloomberg.
July 2, 2014
Billionaire Carlos Slim will buy out AT&T Inc. (T)’s stake in America Movil SAB for $5.57 billion, propping up his Latin American mobile-phone company’s stock price as his longtime partner from the U.S. exits the business.
Slim’s holding company, Inmobiliaria Carso, told America Movil’s board it will acquire AT&T’s 8.3 percent stake, which includes 24 percent of the company’s voting shares, according to a filing yesterday. AT&T will receive $4.57 billion at the close of the sale and another $1 billion within 60 days of the closing, the Dallas-based company said in a separate filing.
June 26, 2014
Carlos Slim’s America Movil (AMXL.MX) said on Wednesday it had created a committee to evaluate options in response to an overhaul of Mexico’s telecommunications sector which aims to curb its dominance.
The committee will study “structural, commercial, technological and other options … as well as the opportunities offered by the new Mexican regulatory framework,” the company said in a statement.
April 10, 2014
Carlos Slim, Latin America’s wealthiest businessman, has long enjoyed a dominant position in Mexico’s telecom sector. New rules spearheaded by the administration of Mexican President Enrique Peña Nieto, however, could threaten Slim’s position in the market.
Right now Slim and his company, America Movil, have a behemoth presence in Mexico. According to The Economist, “América Móvil controls 80% of fixed-line and 70% of mobile subscriptions, giving it a massive advantage when it comes to selling internet access. Although his businesses are exceptionally profitable by global standards, the services are slow and expensive, and their uptake low, even by Latin American standards.”
Slim’s net worth is estimated at $71 billion, more than double the annual revenues generated by Mexico’s entire telecom sector. According some estimates Slim’s companies cost Mexico $129 billion over the course of four years, an amount that is equal to 2% of Mexico’s GDP.