April 1, 2001
Teléfonos de México, Mexico's leading fixed-line telecommunications operator, spun off its wireless cellular phone business in February in a $15 billion listing of América Móvil on the New York Stock Exchange - the largest-ever such divestiture by a Latin American company. Separating Telmex's Mexican fixed-line business and América Móvil's growing pan-American wireless activities puts it on the fast track for acquisitions in the US and Latin America while maximizing shareholder value, says José Juan Olloqui, vice president of investment banking at JP Morgan in Mexico City, which advised Telmex on the transaction. "[América Móvil] was growing at mo
By spinning off América Móvil, Telmex's wireless business can more effectively create a pan-Latin presence. The new company has $2.5 billion in cash and is on the fast track for buying cellular phone assets in the Americas.