Carlos Slim spokesperson denies talks with Portugal Telecom
www.WirelessFederation.com/news: Mexican billionaire and telecoms tycoon Carlos Slim’s spokesperson has rebuffed reports that Slim’s telecom company is in talks with the management and shareholders of Portugal Telecom to fend off a bid for the Portuguese company’s Brazilian wireless unit by Telefonica SA. According to Arturo Elias Ayub, the company is not talking to Portugal Telecom and has no interest in taking a relevant participation in Portugal Telecom; neither is it trying to block the Telefonica deal.
It has been reported by the local media that Slim owning less than 5% of Portugal Telecom has been in talks with Banco Espirito Santo, one of Portugal Telecom’s key shareholders, about how to block Telefonica’s EUR5.7 billion bid for its stake in Vivo Participacoes SA. Telefonica has been trying to merge Vivo with Telecomunicacoes de Sao Paulo SA, or Telesp, the Spanish company’s fixed-line unit in Brazil and for this purpose; it has been trying to gain control of it since at least 2006. Telefonica even threatened to curb Portugal Telecom’s ability to pay dividends, seeking to force it to the negotiating table.
Portugal Telecom on the other hand had described the bid as low and opportunistic and before that it called its stake in Vivo Participacoes SA, Brazil’s largest wireless operator, strategic, suggesting a sale wouldn’t be considered.
Slim owns America Movil SAB which is the largest mobile operator in the region with just over 206 million wireless subscribers in 17 countries in the Americas and also controls Mexico’s biggest fixed-line phone company Telefonos de Mexico SAB and South American fixed-line carrier Telmex Internacional SAB, or Telint.
Telefonica Spain and Slim directly compete in wireless and fixed-line telecommunications in most of the region’s countries and are arch rivals in Latin America. Cash and share tender had been launched by America Movil on May 11 to acquire holding company Carso Global Telecom SAB and Telint as part of Slim’s plan to consolidate his diverse telecommunications assets in a deal worth about 300 billion pesos ($23 billion).
America Movil launches tender offer for Carso & Telint
www.WirelessFederation.com/news: Carso Global Telecom and Telmex International (Telint) tender offer has been launched by America Movil and the telco has announced that a share exchange offer will be launched to the shareholders of the two companies.
America Movil will get an indirect 59.4 percent stake in fixed-line operator Telefonos de Mexico (Telmex) and 60.7 percent in Telmex Internacional through the share swap. MXN 11.66 in cash or 0.373 AMX L shares for each series L share or series A share tendered has been offered by America Movil and it has offered MXN 233.20 in cash or 0.373 AMX L ADSs for each Telmex Internacional ADS tendered.
America Movil is also offering 2.0474 AMX L Shares for each Carso share tendered, and 0.20474 AMX ADSs for each Carso ADS tendered.
Embratel Q1 net profit rises slightly (Brazil)
www.WirelessFederation.com/news: The financial result for the first quarter of this year has been announced by Brazilian long-distance telecommunications provider Embratel Participacoes (Embratel). Due to an increase in revenues and lower costs, the company earned a net profits of BRL271.1 million (USD155.0 million), up from BRL216.7 million in the same period a year ago.
Controlled by Mexican powerhouse Telefonos de Mexico (Telmex), the operator booked first-quarter net revenues of BRL2.74 billion, up 6.3% year-on-year. Earnings before EBITDA totalled BRL810.9 million in the period under review, compared with BRL660.6 million in 1Q09.
The gross debt climbed to BRL2.05 billion from BRL1.84 billion as at end-2009.
America Movil plans to close Carso, Telmex takeovers soon (Latin America)
www.WirelessFederation.com/news: The proposed acquisitions of Telmex Internacional SAB and Carso Global Telecom SAB has been planned to be closed by America Movil SAB in the month of May, America Movil is Latin America’s largest mobile operator. The tender offers for the two companies will be launched by America Movil on April 7 and May 5.
With a deal creating a telecom giant with about 250 million subscribers in the Americas, Mexican billionaire Carlos Slim’s has planned to consolidate his diverse telecommunications holdings under America Movil through this tender.
2.0474 shares has been offered by the telco for every share held in Carso Global Telecom, giving it a 59.4% stake in Mexico’s largest fixed-line carrier Telefonos de Mexico SAB and 60.7% of South American carrier Telmex Internacional.
The rest of Telmex Internacional is also seeked to be acquired by the wireless giant by offering minority shareholders 0.373 America Movil share or MXN11.66 in cash, for each Telmex Internacional share.
82.48 billion pesos ($6.55 billion) would have to be paid by telco in the event all of Telmex Internacional’s minority shareholders were to opt for cash. Delisting of Carso Global Telecom and Telmex Internacional from the stock exchanges is also in America Movil’s plan while Telmex will remain a stand-alone, publicly traded company.
Telefonica files new complaint against Telmex (Mexico)
www.WirelessFederation.com/news: A formal complaint has been lodged by Spanish telecom giant Telefonica criticizing the watchdog for discontinuing an investigation into potential anti-competitive practices by fixed line incumbent Telefonos de Mexico.
The complaint has been lodged with the Mexican antitrust body Comision Federal de Competencia (Cofeco).
Telefonica alleged that Telmex’s bundling strategy was hindering competition, leading to a two-year investigation by Cofeco. At the end of the investigation in August 2009, the case was closed by Cofeco citing lack of evidence against Telmex.
Telmex’s decision not to pass on to the consumer a new 3% telecoms tax introduced earlier has been objected by Telefonica in its new complaint raised to Cofeco.
Share exchange offered by America Movil to Carso, Telmex Internacional shareholders
www.WirelessFederation.com/news: A share exchange offer to the shareholders of Carso Global Telecom and Telmex Internacional will be launched by Mobile operator America Movil. 2.0474 shares of the stock will be exchanged by America Movil for each Carso share.
An indirect 59.4 percent stake in fixed-line operator Telefonos de Mexico (Telmex) and 60.7 percent in Telmex Internacional would be gained by America Movil through this share swap. Telmex Internacional shareholders would then be offered around 0.373 America Movil shares or MXN 11.66 (approximately USD 0.92) in cashes for each of its share.
America Movil has also planned to delist Telmex Internacional and Carso Global Telecom from all stock exchanges following the stake swap. Integrated (voice, data and video) services in the region is intended to be offered by America Movil, independent of the platform on which they are generated via this business consolidation.
$850 million investment to be made by America Movil in Mexico
www.WirelessFederation.com/news: $850 million investment is eyed by Latin America’s biggest mobile operator America Movil SAB in its domestic operations by 2010. Operating in the 18 countries of Americas, the Company had reported
194.3 million wireless subscribers at the end of September.
America Movil’s largest market is Mexico where its TelCel unit had a 72% market share at the end of the third quarter, with 58.4 million subscribers. According to Movil’s Chief Executive Daniel Hajj, the company invested about $850 million alone in Mexico which may remain same in 2010.
As part of the federal government’s 2010 budget, Mexico’s Congress approved a 3% special tax on telecommunications services and a one percentage point increase to the national value added tax, including other tax increases.America Movil is still evaluating the impact that higher taxes will have on TelCel next year.
Earlier this month, fixed-line carrier Telefonos de Mexico SAB and America Movil’s sister company announced that it will not pass on the cost of higher taxes next year to customers.
Price rise for Telmex’s fixed line only customers(Mexico)
www.WirelessFederation.com/news: Mobile operator Telefonos de Mexico (Telmex) announced that only the fixed line only subscribers in Mexico will have to face price rise, while there will be no rise on the packages including a broadband service. For the packages that have monthly fee, local and long distance calls, digital services, and high speed internet, the prices will remain the same.
Lower house of the Congress of the Union, Mexico’s Chamber of Representatives, passed a legislation levying 3% excise on telecommunication services in October 2009. Telmex took the decision in order to avoid the offset of the increase in taxes on telecom firms, by increasing the cost of the services to its customers.
Earlier, 4% tax was proposed but it was reduced by one percent by the lawmakers.
