YOU ARE AT:AmericasAmérica Móvil to buy out remainder of Telmex

América Móvil to buy out remainder of Telmex

Mexican telecom giant América Móvil, owned by billionaire Carlos Slim, is offering US $6.5 billion to acquire from shareholders the entire ownership of its fixed-line operation Telefonos de Mexico SAB or Telmex.

Currently, América Móvil owns 59.4% and is the biggest shareholder of Telmex. The company launched a tender offer to buy the rest, and said it would pay 10.50 pesos a share, a premium of 11.1% on its share price over the past 30 days.

To seal the deal, AT&T Inc. (T) must sell its 8.5% stake in Telmex, for US $1.4 billion, which represents profit of approximately 1% to 3% per share on sale.

Telmex is formerly the state-owned fixed-line carrier that became the linchpin of Latin America’s most powerful business empire in 1990. In the second quarter, Telmex’s net income felt 11.8% from the year-ago period, while its revenue dropped 2.9% to 27.614 billions pesos (US $2.357 billion).

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ABOUT AUTHOR

Roberta Prescott
Roberta Prescott
Editor, Americasrprescott@rcrwireless.com Roberta Prescott is responsible for Latin America reporting news and analysis, interviewing key stakeholders. Roberta has worked as an IT and telecommunication journalist since March 2005, when she started as a reporter with InformationWeek Brasil magazine and its website IT Web. In July 2006, Prescott was promoted to be the editor-in-chief, and, beyond the magazine and website, was in charge for all ICT products, such as IT events and CIO awards. In mid-2010, she was promoted to the position of executive editor, with responsibility for all the editorial products and content of IT Mídia. Prescott has worked as a journalist since 1998 and has three journalism prizes. In 2009, she won, along with InformationWeek Brasil team, the press prize 11th Prêmio Imprensa Embratel. In 2008, she won the 7th Unisys Journalism Prize and in 2006 was the editor-in-chief when InformationWeek Brasil won the 20th media award Prêmio Veículos de Comunicação. She graduated in Journalism by the Pontifícia Universidade Católica de Campinas, has done specialization in journalism at the Universidad de Navarra (Spain, 2003) and Master in Journalism at IICS – Universidad de Navarra (Brazil, 2010) and MBA – Executive Education at the Getulio Vargas Foundation.