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America Movil SAB de CV (ADR) (NYSE:AMX) Contacts AT&T (T) For $17.5 Billion Asset Sale

Boston, MA 09/17/2014 (wallstreetpr) – America Movil SAB de CV (ADR) (NYSE:AMX) has not yet found a suitable buyer for some of its Mexican mobile assets. However, the company has contacted AT&T Inc. (NYSE:T) and SoftBank, the owner of Sprint Corporation (NYSE:S), for a deal that could be worth $17.5 billion. Some have also cited the sale of the assets could fetch as much as $20 billion because of the lucrative Mexican telecom market.

America Movil SAB de CV (ADR) (NYSE:AMX), Mexico’s largest telecom provider, is seeking to unload some of its assets so as to comply with the new regulatory requirements. The company is also expected to spin off its other assets such as network towers and related infrastructure. The company currently controls 70% of the wireless market and 80% of the wireline segment, which makes it the biggest player and has put it at odds with the new regulations. The regulators have placed the market control cap at 50% for any single player.

Shopping widely

America Movil SAB de CV (ADR) (NYSE:AMX) has reached out to a number of potential buyers to unload its mobile assets. Some sources revealed that besides AT&T and SoftBank, which have been persistently mentioned as possible buyers of the assets, America Movil is shopping widely. The company has also reportedly contacted China Mobile, the world’s largest carrier by subscribers, and Bell Canada, for the sale of the assets. Although most reports have placed the value of the assets on sale at $17.5 billion, other sources have mentioned $20 billion, citing the booming Mexican telecom industry.

SoftBank, which is one of the potential buyers mentioned in the talks, recently abandoned the pursuit of T-Mobile US Inc (NYSE:TMUS), in which could have seen it parting with about $32 billion to add the business to Sprint Corporation (NYSE:S), which it owns 80%.

Expanding abroad

As America Movil SAB de CV (ADR) (NYSE:AMX) faces regulatory challenge at home because of its big size, the company has been looking for opportunities abroad and the sale of the earmarked assets could just oil its overseas interest. The company recently increased its stake in Telekom Australia through $1 billion in additional investment, as part of its international expansion, and the move brought its interest in Telekom Australia up to 50% from 27%.

Published by Lisa Ray

Lisa has a Bachelor of Arts in journalism from Purdue University and 3 years of experience in the publishing field.

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