AT&T interested in potential Nextel Mexico acquisition; does not need America Movil's assets for Mexico growth -
AT&T’s CEO Randall Stephenson has asserted his company is interested in considering an acquisition of Nextel’s Mexico-based assets, according to a newswire report. Nextel’s parent company, Reston, Virginia-based NII Holdings, has filed for Chapter 11 bankruptcy protection.
The Reuters report cited statements made by Stephenson during a press conference, during which the CEO added the company believes it has crafted a strategy to develop a “scalable growth platform” to achieve success in Mexico without acquiring assets expected to be sold by Mexico-based telecommunications company America Movil.
However, AT&T would not rule out looking at America Movil assets in the future if they seemed attractive, Stephenson added.
AT&T agreed last week to acquire Mexico-based mobile telephone company Iusacell, which has some 8.6 million customers, for USD 2.5bn, as reported by this news service. Nextel Mexico has 2.8 million customers, the newswire report noted.
The Iusacell acquisition contrasted with a September news reports that AT&T, as well as additional possible buyers Softbank, China Mobile and Bell Canada, had been contacted by America Movil for potential interest in acquiring America Movil’s telecommunications infrastructure. Furthermore, unnamed industry sources cited in a July report in the Mexican press asserted AT&T executives were, at that time, negotiating the possibility of buying America Movil assets.
As reported, recent regulatory changes, including reforms to Mexico's constitution, empowered the country's telecommunications regulator Ifetel last March to declare America Movil economically preponderant, based on its market share in excess of 50% in Mexico’s telecommunications sector, triggering regulatory action to reduce its holdings. America Movil announced on 8 July it plans to conduct asset sales to comply, sparking numerous reports and amble speculation regarding potential suitors.