UPDATE 3-America Movil gets closer to telecom consolidation

* Slim to consolidate telecom assets

* Tougher regional competition prompts offers

* Still needs more shares to delist Telmex International
(Adds detail on delistings, comment; updates stock price)

MEXICO CITY, June 11 (BestGrowthStock) – Carlos Slim’s
consolidation of his telecommunications empire is nearly done
after cellphone giant America Movil successfully wrapped up
tender offers for Telmex Internacional and Carso Global
Telecom.

America Movil (AMXL.MX: ) (AMX.N: ) said on Friday that upon
consummation of the offers, it will hold 92.7 percent of Telmex
Internacional (TELINTL.MX: ) and 99.4 percent of Carso Global
Telecom (TELECOMA1.MX: ).

Carso Global holds a majority stake in Mexico’s largest
fixed-line telecommunications operator, Telmex (TELMEXL.MX: )
(TMX.N: ).

Reacting to tougher regional competition, Slim introduced a
plan in January to shift control of Telmex and regional group
Telmex Internacional to his flagship company, America Movil,
the biggest provider of cellphone services from Mexico to
Argentina. It also operates in the United States.

Based on preliminary results, America Movil will pay about
$2.1 billion to tendering shareholders of Telmex Internacional
who elected to receive cash.

As a result, America Movil expects to have 40.5 billion
shares of capital stock outstanding.

However, the company may face a minor setback in its
original plan for consolidation.

America Movil “needed to successfully purchase at least 95
percent of each company’s shares in order to delist them from
the Bolsa (stock market), but failed to reach this level for
Telmex Internacional,” wrote analyst Vera Rossi from Morgan
Stanley.

Seeking shareholders’ votes to attempt to gain control of
the remaining stock required for delisting Telmex Internacional
could be an option for America Movil, Rossi said, although she
does not foresee the company increasing the offer price.

America Movil shares ended 0.38 percent lower at 31.17
pesos on Friday.

Stock Basics

(Reporting by Cyntia Barrera Diaz; Editing by Richard Chang)

UPDATE 3-America Movil gets closer to telecom consolidation