Carlos Slim's dream to build a new integrated wireless/wireline service provider power reached another milestone this week as America Movil (NasdaqGS: AMOV) launched its tender offer for Telmex International (NYSE: TII-A) and Carso Global Telecom (TELECOMA1.MX). Right now, Slim has a controlling interest in all three service providers.
What drove Slim to consolidate his wireline and wireless holdings under America Movil, not surprisingly, was growing presence of competitive carriers such as Spain's Telefonica.
The deal, which America Movil's CFO Carlos Garcia-Moreno says will close next month, will create a new provider that could share network infrastructure and create new consumer service packages in various Latin American markets. However, America Movil would not reveal how much money would be saved through the consolidation of the three companies.
For more:
- Reuters has this article
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