AMX Moves Consolidation Forward

Telemex’s board has approved America Movil’s previously announced plans to launch a public offer for the 40.04% of Telmex it doesn’t own. AMX will spend up to MXP76.34bn ($6.51bn) in the offer, the last step in an effort to bring all of the Mexican billionaire Carlos Slim’s telecom operations under one roof. AMX is offering MXP10.50 per share for the approximately 7.2m shares, representing what it says is an 11.1% premium over the average share price of the 30 days prior to announcement, or a 0.7% premium to Monday’s MXP10.43 close. If successful, AMX would own all of the Telmex shares and de-list its former parent. Last year, America Movil acquired Telmex Internacional and Telmex holding company Carso Global Telecom, giving it about 60% of Telmex, in an operation involving stock and cash worth about $23bn.