Axtel said Eyeing Rival Alestra

Mexican telecom Axtel is studying the acquisition of competitor Alestra, according to JPMorgan. “An acquisition could happen in the short to medium term, subject to price for the asset,” the shop says in a research report on Mexican corporates. The report finds that Mexican issuers are turning more to the local markets, in the face of difficulty raising funds abroad, and Mexico’s second-largest telecom is expected to refinance its $163m in 11% 2013 bonds in the local market. JPMorgan was also bullish on Maxcom’s bonds, which it found should be trading closer to those of Axtel and other peers. Other names likely to refinance debt include glassmaker Vitro, considering a takeout of its $225m in 11.75% 2013 bonds, possibly in the local market. Mobile operator Iusacell also intends to refinance $650m in different maturities, says JPM.