America Movil SA de CVNYSE
Wed, Oct. 26, 3:20 PM
- With AT&T beginning a long journey to acquire Time Warner, is T-Mobile (TMUS +0.7%) the next big acquisition target in the media/telecom space? Analysts are talking up the carrier's prospects after it logged another successful quarter.
- For its part, T-Mobile has been and still is "very interested" in strategic options, COO Mike Sievert says.
- "The takeout target over the next 12 months has got to be T-Mobile," says New Street Research's Spencer Kurn, noting potential suitors in Comcast (NASDAQ:CMCSA) -- which is exercising a clause with Verizon to launch MVNO service -- as well as Dish Network (NASDAQ:DISH) and America Movil (NYSE:AMX).
- Dish has a lot of spectrum but no wireless business -- and it's lost a potential buyer in AT&T, which now has its hands full with Time Warner, notes BTIG's Walt Piecyk.
- Rival Sprint (S -1.8%) could be a takeover target as well, as CEO Marcelo Claure noted "we've had a lot of bankers placing more calls than usual over the weekend" in yesterday's earnings call.
Thu, Apr. 21, 10:57 AM
- Vivendi (OTCPK:VIVHY -2%) is actively pushing Telecom Italia (TI -0.1%) toward a sale of its Brazilian unit, TIM Participaçoes (TSU +1.8%), sources tell CTFN.
- The French media giant's stance on TIM was a clear catalyst for the March departure of Marco Patuano as TI's chief executive, as Patuano was inclined to hold on to the business.
- A series of machinations over the past year took place around the possible merger of TIM with debt-laden carrier Oi (OIBR -3.5%) before the prospects of a deal imploded.
- An M&A lawyer said that when Vivendi inherited its Telecom Italia stake in 2014 (via its sale of broadband company GVT to Telefonica), it was already expressing an interest in getting out of Brazil and taking charge of TI as a media platform.
- Rivals Telefonica Brasil (VIV -0.2%) and Claro (AMX +1.5%) aren't likely candidates to take over TIM due to regulatory issues. Oi is surely a candidate again, but more desperate for a move than TIM. Brazil might go for a bid from someone like Vodafone (VOD -0.8%), though.
- Now read Oi's Debt Restructuring: A 4-Player Chess Game »
Nov. 12, 2015, 4:39 PM
- Telecom Italia (TI -1.3%) says it's open to all options for its Brazilian mobile unit TIM Participações (TSU -3.1%), CEO Marco Patuano says -- including a merger with the country's leader Oi (OIBR -2.9%), if Oi can clean up its debt and if regulations get looser.
- TI has made no decisions about whether it would want control in a tie-up with Oi, he says. Oi recently entered into seven months' exclusive talks with Mikhail Fridman's Letter One investment company over merging Oi with a competitor.
- Talk of Brazilian telecom consolidation has boiled at a high pitch for months, more so in recent weeks as Fridman floated a $4B incentive to get a deal to happen. An Oi-TIM combination would get a boost against Telefonica Brasil (VIV -2.5%) and America Movil (AMX +0.3%). Key CEOs are in near-unison about the country changing its rules governing fixed-line concessions, though.
- Earlier in Barcelona, Oi's Bayard Gontijo said he expected a government proposal to change rules in about 10 weeks.
- Patuano is calling for Oi to work out its deb and financial structure: "So I think 2016 will be the magic year for Oi to find a solution whatever that is."
- America Movil's Carlos Garcia Moreno is skeptical, though: "For anyone who wants to take over Oi, it is basically like tying yourself to a cannonball and jumping into the water."
- Previously: Oi ADRs down 5% as Brazilian telecom swings to Q3 loss (Nov. 12 2015)
Jun. 12, 2015, 5:19 PM
- Today in telecom consolidation speculation: While Dish Network (NASDAQ:DISH) and T-Mobile (NYSE:TMUS) have been talking about a deal with upsides for both (and shareholders have driven DISH up 2.6%, TMUS up 1.8% since word broke June 3), they aren't each other's only option.
- And much of what transpires there depends on T-Mo parent Deutsche Telekom (OTCQX:DTEGY) and what it wants to do with an asset that can command top dollar as perhaps the last attainable big U.S. cell provider.
- “They’re obviously controlled by a German company who has strategic initiatives, both in Europe and the United States, and they may not be in a position where they want to do anything," Dish chief Charlie Ergen said in a Bloomberg TV interview.
- From Dish's perspective: It doesn't need to rush, as it's making free cash flow and has time to sit on its large spectrum stockpiles yet. Ergen could look for a sale to Verizon (NYSE:VZ), or break the spectrum off into a separate company with a sale-leaseback. In any case, many deals that seemed well under way have been kiboshed by the mercurial Ergen.
- Fron T-Mobile's: Deutsche Telekom is reportedly worried about an overvalued Dish and getting too much of that stock. T-Mobile could probably command $49/share in a sale, or a 25% premium, says Gabelli's Sergey Dluzhevskiy. One company that wouldn't blink at that price would be Comcast (NASDAQ:CMCSA) in its own quad-play grab.
- Altice (OTC:ATCEY), which considered a run at Time Warner Cable (NYSE:TWC), could be a long-shot for T-Mobile, or even Charter (NASDAQ:CHTR). And with AT&T expanding in Mexico, how interesting would it be if América Móvil (NYSE:AMX) pumped up its U.S. presence with Big Magenta?
May 13, 2015, 12:19 PM
- Telefonica Brasil (NYSE:VIV) is trading 0.6% lower after profits dropped 12% in a sharply slowing Brazilian market.
- Revenues grew in Q1 bolstered by mobile sales that were up 8.4% to 5.9B reais (about $1.95B). But fixed-line services fell 4% to 2.74B reais (about $906M) amid a continuing transition to mobile.
- Total access of 97.2M (81.9M mobile, 15.3M fixed). Postpaid accesses were up 16% and mobile ARPU up 4.3% Y/Y (boosted by data ARPU that rose 26.3%).
- Broadband access declined slightly to 3.9M. Fiber-to-the-home had 429K accesses (up 82%). The IPTV base hit 111K accesses.
- About Brazil's consolidation and a talked-about deal to split TIM Participações (NYSE:TSU) with Oi (NYSE:OIBR) and America Movil (NYSE:AMX), CFO Alberto Horcajo was sanguine: "Our market position keeps getting stronger ... So if we can keep our clients and win new ones, what's the sense in paying to buy a new client base from someone without our strengths?"
Jan. 16, 2015, 2:59 PM
- AT&T's (T +1.6%) $2.5B purchase of Mexican mobile carrier Iusacell is officially on the books. Ma Bell has used the occasion to reiterate the merger will allow it to offer cross-border mobile services. "It won't matter which country you're in or which country you're calling it will all be one network, one customer experience."
- AT&T has also announced Thaddeus Arroyo, formerly the president of AT&T's Technology Development unit and before that its CIO, will run Iusacell. Adrian Steckel, until now Iusacell's CEO, will "assist Arroyo with the integration of Iusacell into AT&T."
- Separately, Reuters reports China Telecom (CHA -2.2%) is "preparing a possible bid" to build and run a Mexican wholesale mobile network expected to cost $10B over 10 years. The network, mandated by Mexico's 2013 telecom reform bill, aims to allow America Movil's (AMX -0.6%) rivals (such as Iusacell) to provide better coverage without having to rely on AMX, which is still looking for a buyer for the Mexican assets it's shedding to bring its share below 50%.
Jan. 9, 2015, 7:08 PM
- Still looking to unload Mexican telecom assets (and thereby appease regulators), America Movil (NYSE:AMX) is spinning off a holding company known as Sercotel that has $2.08B in assets. AMX calls the move a "simple reorganization" meant to make its corporate structure more efficient.
- Meanwhile, Bloomberg reports AMX is "adjusting" how it will break up its Mexican assets in an attempt to rejuvenate a stalled sale process. Carlos Slim mentioned in October AMX could expand its asset sale beyond Mexico's eastern coast. AT&T, of course, opted to buy smaller AMX rival Iusacell.
Dec. 22, 2014, 1:40 AM
- Mexico's Federal Competition Commission has approved AT&T's (NYSE:T) $1.7B purchase of local cellphone company Iusacell.
- The competition regulator set conditions on the deal to "avoid risks to the process of competition" in markets where Iusacell would compete with America Movil (NYSE:AMX), which previously counted AT&T as a minority investor.
- AT&T sold its America Movil shares in the summer, before announcing its deal with Iusacell in November.
Dec. 10, 2014, 1:53 PM
- Bloomberg reports Oi (OIBR -2.6%), America Movil's (AMX -2.7%) Claro, and Telefonica's (TEF -0.7%) Vivo (VIV +2.8%) plan to jointly offer $15B for Brazilian rival TIM Participacoes (TSU +11.6%).
- TIM has soared on the report, which comes shortly after Oi struck a deal to unload its Portuguese ops for $9.1B. TIM's market cap is now at $12.1B; parent Telecom Italia (TI +1.2%) has risen modestly.
- A Brazilian paper reported in October Oi, Claro, and Vivo were interested in acquiring and breaking up TIM to consolidate a mobile market facing slowing growth and tough price pressure.
Nov. 7, 2014, 4:22 PM
- Iusacell has 8.6M Mexican mobile subs, and a 3G network that covers 70% of the country's population (120M). AT&T (NYSE:T) is paying $2.5B in cash to buy Iusacell from parent Grupo Salinas, after accounting for debt. The deal is expected to close in Q1 2015.
- AT&T highlights Mexico's relatively low mobile/smartphone penetration rates while discussing the deal, as well as synergies with its U.S. mobile ops and recent regulatory moves meant to loosen America Movil's (NYSE:AMX) market dominance. AT&T was previously believed to be interested in Mexican assets AMX is looking to sell to appease regulators.
- AT&T "plans to expand Iusacells network to cover millions of additional consumers and businesses in Mexico." At the same time, AT&T won't be acquiring Iusacell's Total Play pay-TV/wireline broadband business. DirecTV (NASDAQ:DTV), which AT&T is set to acquire, owns 41% of local satellite TV provider Sky Mexico.
- Separately, AT&T has set a 2015 capex budget of $18B, down from 2014's $21B. The carrier declares its Project VIP network expansion project to be ahead of schedule, with the 4G expansion part largely complete.
- T +0.7% AH. AMX -0.6%.
Oct. 31, 2014, 10:14 AM
- Brazilian paper Folha de S. Paulo reports America Movil (AMX +1.6%), Telefonica's (TEF +1.2%) Vivo (VIV +4.9%), and Oi (OIBR +12.3%) have agreed in principle to pay R$31.5B ($13.1B) to acquire and break up TIM Participacoes (TSU +8.6%), Telecom Italia's (TI +2.9%) Brazilian unit.
- The paper adds a formal offer will be made to TI shareholders. TI chairman Giuseppe Recchi says his firm hasn't yet received an offer. TIM's market cap is currently at $12.5B.
- AMX would reportedly keep 40% of TIM, Telefonica 32%, and Oi 28%. Rumors of a joint bid have been around for weeks, as Brazilian carriers dealing with slowing growth and price wars bet consolidation will improve their fortunes.
- Markets are responding well to the report. Oi merger partner Portugal Telecom (PT +8.9%), whose main asset is a stake in the combined company, is also rallying.
Oct. 30, 2014, 1:49 PM
- The WSJ reports SoftBank (OTCPK:SFTBF) has tasked new Sprint CEO Marcelo Claure with "gathering information" on the Mexican telecom assets America Movil (AMX +0.4%) plans to sell to appease regulators.
- AMX was reported last month to have contacted SoftBank (among other carriers) to gauge its interest in buying the assets. BofA has estimated a sale could fetch $15B, but a WSJ source says bidders are eying a ~$10B price.
- AT&T has suggested it's looking to make an offer. Three weeks ago, Carlos Slim told Bloomberg the asset sale could extend beyond Mexico's eastern coast.
Oct. 24, 2014, 6:58 PM
- Thanks in large part to a 41% increase in taxes, America Movil's (AMX -0.9%) Q3 net income fell 39% Y/Y to 10.1B pesos ($746M). EBITDA (adjusted for the Telekom Austria deal) rose 0.4% to 69.2B pesos ($5.1B).
- On an adjusted basis, service revenue rose 3.8% to 198.6B pesos ($14.6B), a slight improvement from Q2's 3.6% growth. Equipment revenue rose 6.2% to 22.2B pesos ($1.6B), and costs/expenses 5.8% to 151.7B pesos ($11.2B).
- Total wireless lines +0.1% Q/Q and +0.5% Y/Y to 286.8M. Mexican lines fell 1.1% Q/Q to 70.5M amid regulatory pressure, but Brazilian lines rose 1.3% to 69.6M, and U.S. lines (via TracFone's prepaid services)1.5% to 25.9M.
- Wireline revenue-generating units (RGUs) rose 1.8% Q/Q and 6.8% Y/Y to 77.6M. Mexican RGUs fell 0.1% Q/Q to 22.2M, while Brazilian RGUs rose 3.1% to 35.6M (~46% of total RGUs).
- Net debt fell by $2.3B during the quarter to $36.2B.
- AMX used its Q3 CC to state its isn't currently talking to anyone about a T-Mobile USA (TMUS +1.3%) acquisition. A German magazine speculated yesterday (while reporting Deutsche Telekom is still open to a T-Mobile sale) AMX could bid for T-Mobile.
- Earnings Release (.pdf)
Oct. 23, 2014, 10:40 AM
- Though it rejected Iliad's overtures, Deutsche Telekom (OTCQX:DTEGY) is still trying to find a suitor for T-Mobile USA (TMUS +2.7%), Germany's Manager Magazin reports.
- The magazine speculates America Movil (AMX +0.8%), which no longer counts AT&T as an investor, could make a bid. For now, Carlos Slim's carrier only operates in the U.S. through its TracFone Wireless prepaid MVNO.
- AMX is also about to get a windfall from the sale of Mexican assets being unloaded to appease regulators.
Oct. 7, 2014, 2:15 PM
- America Movil's (AMX -0.1%) planned Mexican telecom asset sale could extend beyond Mexico's eastern coast, Carlos Slim tells Bloomberg. AMX has already announced plans to sell Eastern Mexican assets to appease regulators who want the carrier's local telecom share to fall below 50%.
- AT&T (NYSE:T), which recently sold its AMX stake to Slim for $5.6B, has suggested it's interested in the assets. For now, Slim only says AMX is "working with the potential buyers to have an agreement."
Sep. 16, 2014, 5:44 PM
- A top AT&T (NYSE:T) executive says the company is open to acquisitions in Mexico, where America Movil (NYSE:AMX) has said it would sell off parts of operations to cut its market share to below 50% from 70% to avoid a regulatory crackdown, creating a rare opening for an acquirer to get a foothold in the country.
- AT&T's attention is focused on closing the $49B deal for DirecTV, but Chief Strategy Officer John Stankey says Mexico is a fast-growing market of interest to the company, and that AT&T has the wherewithal to do other deals if opportunities arise.