AT&T to offload $6B America Movil stake as part of DirecTV deal


AT&T (T) intends to sell its $6B, 8.4% holding in América Móvil (AMX) in order to avoid conflicts of interest from its proposed $48.5B acquisition of DirecTV (DTV) and "facilitate the regulatory approval process in Latin America."

AT&T's representatives on América Móvil's board are set to resign.

The deal will give AT&T a large presence in a region in which DirecTV has 18M customers, making it one of the largest pay-TV operators in Central and South America - along with América Móvil.

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Comments (4)
  • The Deep Value Investor
    , contributor
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    Time to put NIHD on your watch list, that is going to be the next thing AT&T and DTV are going to have in their sites to buy out, in my opinion.
    19 May 2014, 11:23 AM Reply Like
  • kidkodak
    , contributor
    Comments (90) | Send Message
     
    Why Not just purchase the debt for 30? A lot less risky if your theory is even close to being accurate. Att will show up after NIHD emerges from chapter 11
    22 Jun 2014, 11:39 PM Reply Like
  • The Deep Value Investor
    , contributor
    Comments (299) | Send Message
     
    Charlie Ergen of Dish network tried that strategy (buying up the bonds) for Clearwire and LightSquared, did not work out so well for him. Trying to buy the company in BK would be far more complicated (LightSquared), take much more time, and in the end be considerably more expensive. If AT&T/DTV do want NIHD, they will buyout the company prior to any default or BK. If NIHD turns their business around on their own, then AT&T/DTV would have to pay through the nose, or just settle for a partnership.
    23 Jun 2014, 10:32 AM Reply Like
  • kidkodak
    , contributor
    Comments (90) | Send Message
     
    And that buyout will be in the form of a prepackage BK is my guess. Meaning common gets wiped.........
    24 Jun 2014, 12:16 PM Reply Like
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