AT&T Raises $564 Million from Sale of America Movil Stake
AT&T has sold a chunk of its stake in Mexico based America Movil according to stock market filings by both companies.
The company reduced its holding to 9 percent, which it said is the level it has historically held its stake at.
The company sold around 540 million shares — which at the current stock market price would have earned the company around US$564 million. AT&T retains a holding of 6.7 billion shares in America Movil.
“From time to time we rebalance our asset levels and raise cash for general corporate purposes,” an AT&T spokesperson said. “We’ve historically owned about 9 percent of AMX. As a result of AMX’s recent share repurchases and our sales, we will again hold an approximate 9 percent interest in AMX.”
America Movil’s share price has fallen sharply in recent months as the company’s dominance of the Mexican telecoms market comes under threat from a major shake-up of the telecoms regulatory regime.
Billionaire Carlos Slim who controls the company has been buying shares to boost his holding, and help stem further declines in the share price.
AT&T has two representatives on the board of directors at America Movil.