América Móvil Extends Cantv Acquisition Deadline
Published on: 5th Oct 2006
Note -- this news article is more than a year old.
Mexican mobile carrier Am rica M 243vil has filed a request with the US securities regulator SEC to extend the deadline for its share acquisition of Venezuelan carrier Cantv AMX said in a statement to SEC
The deadline will be pushed back to December 29 of this year from the original date of October 2, which was also the date of the filing.
AMX is looking to buy 28.5% of Cantv from US telecom firm Verizon and has also stated plans to buy all other shares in the operator.
The Cantv acquisition is part of a larger agreement to purchase 100% of Verizon Dominicana and a 52% stake in Telecomunicaciones de Puerto Rico from Verizon, a deal estimated to be worth US$3.7bn. The statement made no reference as to how the other acquisitions might be affected.
Venezuela's President Hugo Chávez has threatened several times, most recently last Friday (Sep 29), to nationalize Cantv if the company refuses to pay money owed to former employee's retirement funds as ordered by Venezuela's supreme court.
Cantv started payments in the beginning of September to the retirement funds but is still waiting on the government to determine how much backlog it owes to retirement accounts.
AMX has indicated previously it would continue with the acquisition despite threats.