By Anthony Harrup
MEXICO CITY--Shares of Mexican telecommunications heavyweight
America Movil SAB (AMX, AMX.MX) opened sharply lower Monday after
U.S. giant AT&T Inc. (T) said it plans to sell its roughly 8%
stake in the company as part of its $49 billion acquisition of
DirecTV.
Shares of America Movil, controlled by billionaire Carlos Slim,
were recently off 4.7% at 12.60 pesos (98 cents) on the Mexican
stock exchange.
AT&T, a long-time investor in America Movil and its
forerunner Telmex, said it plans to unload the $6 billion stake to
facilitate regulatory approval of its purchase of DirecTV, which
competes with Mr. Slim's company in pay television in Latin
America.
AT&T has already been reducing its holdings in the Mexican
company in the open market, selling $320 million worth in the first
quarter after selling $1.2 billion in 2013.
America Movil declined to comment on the decision late Sunday,
or to say whether it will buy back the stake.
Mr. Slim's company last week launched a buyout offer for shares
of Telekom Austria (TKA.VI) not owned by itself or by Austrian
government holding company OeIAG. If all shares are tendered, the
deal will cost America Movil around $1.9 billion. That doesn't
include the Mexican company's share of a planned Telekom Austria
capital increase, which could mean another $1 billion.
America Movil's net debt at the end of March stood at around
$33.6 billion, equivalent to 1.6 times earnings before interest,
taxes, depreciation and amortization.
Write to Anthony Harrup at anthony.harrup@wsj.com
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