Megacable (Mexico Cable company) stock 24% up amid rumours of a possible bid from Telefonica
Mexico’s telecom operator Megacable Holdings (MEGACPO:MX) stock value has increased by 24% amid rumours of a possible offer from Spain’s Telefonica, Expansion reported without citing sources. Megacable is Televisa’s main rival, with market shares of 40% and 60% respectively, the Spanish-language report noted.
Megacable’s market capitalisation stands at MXN 57bn (EUR 3.3bn). The company’s main owners are several Mexican families, including the Bours and Robinson Bours, who have expressed on several occasions their readiness to take part in a consolidating process in the Mexican telecoms sector. In 2014 Megacable reported sales of about EUR 663m, Expansion noted.
Although Telefonica has committed to lower its debt burden, it will still have EUR 5bn - EUR 6bn for investments, according to the report.
Telefonica's options in Mexico also include Televisa - a possible operation that would have many operational benefits, but is complicated because the empire controlled by Emilio Azcarraga will not easily cede management control. An alternative would be to acquire assets from America Movil, the report added.
Expansion