América Móvil extends CANTV purchase deadline

5 Jan 2007

Mexican mobile group América Móvil (AM) has extended the deadline to acquire a stake in Venezuela’s fixed line incumbent CANTV to 28 February 2007, the company said in a filing with US securities regulator the SEC. The previous deadline was 29 December 2006. AM and its sister telco Telmex have jointly agreed to buy 28.5% of CANTV from US communications group Verizon, and ultimately aim to buy out all other shareholders in the operator. Acting on its own, AM closed the purchase of Verizon Dominicana last month, whilst it is waiting for regulatory approval for its planned purchase of Verizon’s 52% stake in Telecomunicaciones de Puerto Rico. The three deals are worth an estimated USD3.7 billion. The CANTV deal has stalled partly because the Venezuelan firm is awaiting a ruling from the government on the exact amount it owes former employees.

Venezuela, America Movil (AM), CANTV, Telefonos de Mexico (Telmex)