Teléfonos de México SAB de CV, known as
Telmex, a fixed-line operator with about 90% of the Mexican market, has spun off Telmex Internacional, which operates outside Mexico in Brazil, Argentina, Chile, Colombia, Ecuador, Peru and Uruguay. Slim Domit, son of billionaire Carlos Slim, who controls Telmex and Telmex Internacional, told Reuters, "We are starting with the
right financial structure for [acquisitions]" The company has $1.8 billion cash on hand with $1.4 billion in debt.
Creating Telmex Internacional gave investors a choice between a new company that has its eyes on expanding throughout South America and a slower-moving giant that delivers solid profits and dividends. A Bloomberg report said Telmex Internacional has some
potential for growth, but not as much as wireless carrier America Movil -- which Domit spun out in 2001 -- because it is competing in a business that is more mature.
The $16 billion spinoff comes at a time when the
telecom sector is again consolidating. Over $100 billion worth of deals were announced just last week. -
Baz HiralalTelmex foreign spinoff has cash for acquisitionsSlim's Telmex Internacional May Yield Less Than Movil
Join Corporate Dealmaker's LinkedIn forum
Juergen Lasowski
And the winners are...
Have been unable to get the cost basis for the ADR Telmex spinoff of Telmex Interncional. Any suggestions would be appreciated.
Hal Placet