News Column

Slim to buy back AT&T's America Movil stake

June 28, 2014



Mexico City, Jun 28 (EFE).- Two Carlos Slim-controlled companies will acquire AT&T's stake in his America Movil telecoms group, the Mexico City-based firm announced.

In a regulatory filing sent to the Mexican Stock Exchange, America Movil said its board authorized Slim's Inmobiliaria Carso and Control Empresarial de Capitales to purchase AT&T International's nearly 5.74 billion series AA shares.

The filing said those shares represent 23.81 percent of America Movil's voting stock but only 8.27 percent of the company's capital stock.

Inmobiliaria Carso and Control Empresarial de Capitales also informed America Movil that they will acquire 72.8 million of AT&T's series L shares, the filing said, meaning that the U.S. multinational is fully exiting its stake in the Mexican telecoms giant.

Based on America Movil's share price Friday, the total value of AT&T's series AA and series L shares comes to roughly $5.84 billion.

"Upon consummation of the transaction authorized (Friday) by the Board of Directors, AT&T will no longer be a shareholder of America Movil," the filing said, adding that America Movil "recognizes the great value that the partnership with AT&T had for both companies for more than 20 years."

AT&T, which agreed in May to acquire DirecTV for $49 billion, said that as part of that deal it would divest its stake in America Movil and remove its three appointees to that company's board in a bid to secure regulatory approval.

DirecTV competes in Latin America's pay TV market with America Movil, which also offers telephone and Internet service throughout that region.

America Movil, the telecommunications services leader in Latin America, had 272.2 million wireless subscribers and 70.7 million fixed revenue generating units in the Americas at the close of March. EFE

jrm/mc


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: EFE Ingles