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.
America Movil plans to buy back share
www.WirelessFederation.com/news: In a move to carry out Latin America’s largest acquisition, telecom operator, America Movil SAB has planned to pay a one-time dividend and buy back more of its stock, thus rewarding investors. The proposal for a payout of 32 centavos a share to shareholders by April 30 has been submitted by the board of the company.
50 billion pesos ($3.96 billion) would be added to the share buyback fund by the plan, which had 7.15 billion pesos remaining as of yesterday.
A debt has been issued by America Movil, to prepare for the cash and stock purchase of Slim’s Telmex Internacional SAB to add home-phone, Internet and TV service in Latin America. The two deals are valued at more than $20 billion. 14.9 billion pesos of bonds was sold by the largest wireless carrier in the region last week in the biggest corporate debt issue in Mexican history.
200 million Swiss francs ($186 million) of five-year bonds is also planned to be sold by the company while 50.4 billion pesos for dividends and buybacks in 2009 has also been paid by the 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.
Telcel and Telmex tie-up opposed by Mexican cablecos
www.WirelessFederation.com/news: Mexico’s antitrust watchdog, the Comision Federal de Competencia (Cofeco), has been requested by the country’s cable television operators to reject businessman Carlos Slim’s plan to merge his wireless and fixed line operators, Telcel and Telmex.
According to Camara Nacional de la Industria de Telecomunicaciones por Cable (CANITEC), a trade body representing cablecos including Megacable, the tie- up could effectively cripple competition in the Mexican telecommunication sectors.
The plea came after the revelation that America Movil (AM) is planning to consolidate both Slim’s other telecoms companies Carso Global Telecom and Telmex Internacional (Telint). America Movil took the decision to create a regional telecoms giant offering fixed line, wireless and broadband services, to more than 250 million subscribers.
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.
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.
Nortel wins Embratel deal for fixed wireless infrastructure
Embratel, Brazil-based long-distance service provider and subsidiary of the Telmex group, has chosen Nortel to upgrade its fixed wireless network to deliver high-quality voice service to around 1 million subscribers. The CDMA2000 1X network expansion will help increase network capacity and coverage to accommodate more voice subscribers and enable voice quality for Embratel’s wireless local loop service known as Livre. As part of the deployment, Nortel will replace Embratel’s existing Livre network in Sao Paulo, and once deployment is complete, Nortel will be Embratel’s principal wireless infrastructure provider in Brazil for Livre. Nortel’s wireless infrastructure being deployed for Embratel includes CDMA2000 1X radio base stations, base station controllers, CDMA Packet MSC and other related equipment.
Source- http://www.telecompaper.com
