AM in hunt for Telemig Celular, Amazonia Celular

26 Jul 2007

The CEO of Mexico-based mobile giant America Movil (AM), Daniel Hajj, says his company is interested in acquiring Telemig Celular and Tele Norte Celular Participações (Amazônia Celular). He confirmed that AM is ‘competing’ with rivals for the Brasilia-based cellcos, but said that it purchasing them was not a necessity for AM to compete effectively in Brazil.

According to TeleGeography’s GlobalComms database, Telemig and sister company Amazônia Celular signed up the services of Merrill Lynch to coordinate their search for a buyer in May this year. Mem Celular Participações, the company that indirectly controls the two operators, has asked Merrill Lynch to prepare ‘studies and adopt processes aiming for the evaluation of alternative strategies relative to their investments in Telemig Celular and in Amazônia Celular’. The sale was expected to be completed in 1H 2007, with Claro and Vivo originally seen as the companies most likely to participate.