Seeking Alpha

America Movil to divest Mexican assets, renounce Dish Mexico rights

  • With regulatory pressure mounting, America Movil (AMX) plans to divest some Mexican assets into a new independent company. The company also plans to split its wireless towers from the rest of its Mexican business, and renounce its rights to acquire control of satellite TV provider Dish Mexico.
  • AMX notes its plans require the approval of regulators, and perhaps also shareholders.
  • The move comes as Mexico's lower house approves a fresh telecom reform bill that would impose stiff penalties on AMX if it kept its combined wireline/mobile market share remained above 50%. A bill passed last year created a new telecom regulator.
  • AMX +1.3% AH.
Comments (1)
  • lilly21
    , contributor
    Comments (2) | Send Message
     
    Does anyone have any ideas about how this might affect American Movil and its financial outlook and how this "new independent business" will be set up?
    8 Jul 2014, 11:07 PM Reply Like
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