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América Móvil sells debt to acquire Telmex
05 March 2010
Carlos Slim’s América Móvil has raised $1.17 billion in debt to finance purchase of fixed-line operator Telmex Internacional
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Telmex
América Móvil
Carlos Slim
Mexico
Banco Santander
Grupo Financiero Inbursa
Citigroup
Banamex
Mexico City-based América Móvil has raised $1.17 billion through a three-part bond sale. The sale included $361 million floating-rate bonds maturing in five years, $550 million fixed-rate bonds maturing in 10 years and $258 million inflation-linked debt maturing in 15 years.
The underwriters on the offering were Banco Santander, Grupo Financiero Inbursa, Carlos Slim’s financial company and Citigroup’s Banamex.
The company, controlled by billionaire Slim, will use some part of the sale proceeds to finance the acquisition of Slim’s South American land-line phone company, Telmex Internacional.
The $20 billion stock and cash deal is expected to close in the second quarter of 2010. It will give América Móvil access to Telmex’s voice, web and TV services. The deal will also hand the company control of Slim’s Mexican land-line carrier, Telefonos de Mexico, which will operate separately. GTB