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América Móvil places $21bn Telmex bid
14 January 2010
Carlos Slim is planning to bring together his Mexican fixed, mobile and international phone companies with a $21 billion offer by América Móvil for Telmex and Telmex Internacional
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Carlos Slim
Mexico
América Móvil
Telmex
Comment: If this deal goes ahead, it will create a formidable force in Mexican telecoms, and telecoms throughout Latin America. América Móvil has huge market share and so does Telmex in Mexico, and América Móvil is one of the few big mobile operators in South America, competing with Telefónica and relatively few others.
Carlos Slim’s América Móvil has offered $21 billion for his two other Mexican telcos, Telmex and Telmex Internacional (Telint). Billionaire Slim, who controls all three companies, is seeking to create a combined fixed-line telephone, mobile and Internet services provider across Latin America.
América Móvil is planning to acquire the two companies through their holding company, Carso Global Telecom. With a successful deal, the Mexican wireless company will indirectly own 59.4% of Telmex’s shares in circulation and 60.7% of those of Telint.
América Móvil is offering 2.0474 of its shares for every Carso Global Telecom share, valuing the part of the deal at $18 billion. It is also providing 0.373 of its shares for every Telint share outside of Carso Global Telecom, which is worth about $3.4 billion.
Slim is planning to delist Carso Global Telecom and Telint after the potential acquisitions. América Móvil will be absorbing Telint, while Telmex will keep a separate management. GTB