América Móvil Pulls Plug on CANTV Deal

Confirming recent speculation, Mexico’s América Móvil has pulled out of a deal to buy a 28.5% stake in Venezuela’s CANTV from Verizon of the US. The acquisition had yet to receive regulatory approval. Last year, as part of a wider deal, the mobile phone operator owned by Carlos Slim agreed to buy the Venezuelan assets for $676.6 million. However, plans announced by President Hugo Chávez to nationalize Venezuela’s telecoms industry sent CANTV shares plummeting at the beginning of the year. Government statements made since have done little to reassure investors.