Carlos Slim is interested in acquiring Nasdaq-listed NII Holding’s subsidiary Nextel Argentina, which the US-based telco put up for sale in February and could fetch up to US$400m.
According to a report in Argentine newspaper Clarin local investor…
Carlos Slim is interested in acquiring Nasdaq-listed NII Holding’s subsidiary Nextel Argentina, which the US-based telco put up for sale in February and could fetch up to US$400m.
According to a report in Argentine newspaper Clarin local investor Eduardo Eurnekian is the current favourite to secure a deal, which would involve a partnership with state-owned Arsat, but Slim’s America Movil has held talks with Nextel a few months ago and is monitoring the situation.
The Mexican behemoth’s potential acquisition is said to hinge upon an oil deal between state-owned energy oil and gas companies YPF and Pemex, owned by Argentina and Mexico respectively, reported Clarin without citing sources. A positive resolution to the oil negotiations could lead the Argentine government to endorse new business from Mexican companies.
NII decided to sell its businesses in three of the five countries it operates in after a strategic review which it announced the results of in February.
It has sold its Peruvian business to Chile’s Entel, and its Argentine and Chilean telcos remain in the shop window. The US-based Latam-focused company wants to concentrate on its core markets of Brazil and Mexico.
Eurnekian’s rival interest in Nextel would involve a partnership with state-owned satellite operator Arsat, which was awarded 25% of Argentina’s 3G spectrum by the government last September after only one bidder – America Movil – met the financial requirements for a tender of licences in the 850 MHz and 1900 MHz bands.
The Kirchner-led government has not been shy to intervene in the private sector – on this occasion the planning minister said that awarding AMX the licences would give it a virtual monopoly.
AMX already owns a large wireless operator in Argentina which operates under its Claro brand and has close to a third of wireless subscribers. It recorded US$2.9bn in revenues for its Argentina, Paraguay and Uruguay business unit for last year.
Last week Argentina’s planning and public finance minister Julio De Vido, a long-time ally of President Kirchner, was quoted by El Economista as saying that underperforming operators faced the prospect of nationalisation if they not improve the quality of their wireless services.
