January 10, 2007

After CANTV loss, Telmex looks elsewhere in Americas

Filed under: Venezuela — rdrutherford @ 7:17 pm

After CANTV loss, Telmex looks elsewhere in Americas
Reuters – January 10, 2007 12:02 PM ET
Related Quotes
Symbol Last Chg
VNT Trade 14.63 +2.43
TMX Trade 26.31 -0.02
AMX Trade 43.57 +0.24
Real time quote.
MEXICO CITY, Jan 10 (Reuters) – Venezuela’s decision to privatize CANTV has closed the door on plans by Telmex to buy the South American nation’s largest telecom but will not halt the Mexican company’s regional expansion, Telmex said on Wednesday.

Arturo Elias Ayub, strategic alliance director of Telmex and son-in-law of billionaire Telmex owner Carlos Slim, told local radio there was “much less” chance of Telmex and sister company America Movil buying into CANTV (VNT) TVDd.CR now.

Venezuelan President Huge Chavez said on Monday he would nationalize CANTV and unnamed power utilities.

Slim’s mobile giant, America Movil, and his fixed-line business, Telmex, agreed in April to pay $3.7 billion for the Latin American assets of U.S. firm Verizon Communications Inc. (VZ), including its 28.5 percent stake in CANTV. Slim also offered to buy all outstanding CANTV shares.

Elias Ayub said Telmex and America Movil had not heard from Venezuelan regulatory authorities since April.

“We have had no response from the authorities to see if they would allow us to buy this stake, no response either positive or negative, nothing, and the first news is this last one where the possible nationalization is announced,” he said.

“We have been left as if we had not done anything,” Telmex’s director said.

Telmex has started on a regional expansion in Latin America to boost its business, in part because of its stagnating revenue in Mexico.

“There are many (opportunities) throughout Latin America — in Colombia, Peru, Ecuador, Chile, Argentina, Brazil and even in Venezuela,” Elias Ayub said.

After declining on Tuesday, Telmex’s stock TELMEXL.MX dipped a further 0.90 percent on Wednesday to 14.39 pesos. America Movil AMXL.MX shares slipped 0.46 percent to 23.76 pesos.


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