Alestra CFO rejects claims of plan for Axtel merger

14 Feb 2014

Alestra’s chief financial officer Bernardo Garcia has played down suggestions that his company is considering a merger with rival Axtel as a means to making a push into the residential sector. ‘We are looking for telecoms or IT companies that are 100% focused on the enterprise market,’ Garcia was cited as saying by BNamericas, adding: ‘We are not exploring options or seeking to diverge from that strategic path.’

Such a statement comes on the back of a report by Bloomberg earlier this week which claimed that, while no talks between the parties were actually underway, Alestra was mulling a tie-up with Axtel as a means to reaching consumer users. However, it appears clear that Alestra could make a foray into the residential sector, even if not via a merger, with its renewed interest in the sector said to have come, in part, because of the Mexican government’s plan to create a public network by the end of 2014, providing more capacity for alternative providers to offer internet services. Commenting on the state’s plans, Garcia noted: ‘All the bases are set so that it becomes a last-mile network that could perfectly combine with our growth plan … If it allows us to return to a market with smaller broadband needs, such as small businesses or even home businesses, it could be a natural expansion for us.’

Mexico, Alestra, Axtel