Telefonica Moviles-Pegaso Deal Seen Imminent
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Infolatina via NewsEdge Corporation : MEXICO CITY, May 24, 2001 (Reforma/Infolatina via COMTEX) --
Telefonica Moviles, a subsidiary of Spanish telecom giant Telefonica, is poised to announce it has acquired a majority stake in Mexican mobile carrier Pegaso, which will provide it with nationwide coverage of the country's rapidly growing mobile phone market, according to a report in Mexico City daily Reforma. Executives at Pegaso, currently majority-owned by Mexican magnate Alejandro Burillo, on Wednesday were putting the final touches to what likely will be a letter of intention providing for Telefonica Moviles to take a controlling stake in the company, Reforma business columnist Alberto Aguilar reported. Acquiring Pegaso will give the Spanish company the nationwide presence it is seeking in the Mexican mobile services market. Earlier this year, Telefonica Moviles purchased four small mobile carriers in the north of the country from U.S.-based Motorola, for 1.8 billion dollars. Mexico's second-largest mobile operator, Grupo Iusacell (NYSE:CEL) is believed also to have been interested in acquiring Pegaso, to help it narrow the gap with the country's No. 1 mobile service provider, Telcel, a subsidiary of Telefonos de Mexico (Telmex) (NYSE:TMX) spin-off America Movil (NYSE:AMX) (NASDAQ SC:TFONY). Vodafone Group owns a 34.5-percent stake in Iusacell, and Verizon Communications holds 39 percent.
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