America Movil’s (AMX) Mexican fixed-line subsidiary Telmex has reportedly denied claims it was divesting assets to help its parent avoid stringent regulation.
However, a judge has barred the company from continuing with the sale, according to a…
America Movil’s (AMX) Mexican fixed-line subsidiary Telmex has reportedly denied claims it was divesting assets to help its parent avoid stringent regulation.
However, a judge has barred the company from continuing with the sale, according to a Reuters report.
In July 2013, Telmex shareholders decided to hive off a new business, comprising three units: Alquiladora de Casas, Compania de Telefonos y Bienes Raices and Renta de Equipo.
Telmex rivals claimed the sale was aimed at clearing the assets off AMX’s books but was not reported to the regulator, Reuters wrote. On 7 January, a court reportedly ordered Telmex to cease certain sales.
The fixed-line company was quoted denying the claims, saying the units in question will only hold real estate and leasing operations and not assets intended to provide telecoms services. However, Mexican state papers show requests were made for the spun-off companies to construct or operate network equipment, according to the newswire report.
AMX, owned by Mexican billionaire Carlos Slim, is currently under the regulatory spotlight because of its reported 80% market share of the fixed-line market and 70% of the mobile market.
AMX and Telmex could not be reached for comment before the press deadline.
Separately, US MVNO Tracfone Wireless, another AMX subsidiary, has completed the acquisition of smaller MVNO Start Wireless Group’s assets for an undisclosed price.
Start Wireless Group, also known as Page Plus Cellular, operates over Verizon Wireless’ network and had around 1.4 million subscribers in 2013.
