Iusacell And Unefon Prepare Merger

Mexican mobile phone operators Iusacell and Unefon, both owned by local businessman Ricardo Salinas Pliego, are preparing to merge. The move aims to knock Spanish-owned Telefónica Movistar off the number two spot and will compete with the country’s largest operator, América Móvil, owned by Carlos Slim. The move to merge, which had been flagged as far back as three years ago, was prompted by the near-completion of Iusacell’s debt restructuring and Salinas’ move to take control of Unefon by buying out his partner in the venture, Moisés Saba Masri, for $300 million. Salinas also plans to buy the remaining 10% of the company’s stock, listed on the Mexican Exchange, via a public offering within the next 60 days to take the company private.