Telecoms Investor - World's 3rd Richest Man

MEXICO CITY -(Dow Jones)- The fortune of Mexican telecommunications magnate Carlos Slim swelled by nearly two thirds in the past year, not quite enough to lift him from third place among the world's richest people.

Forbes magazine said Thursday that Microsoft founder Bill Gates remained the world's richest man, with a net worth of $56 billion, followed by Berkshire Hathaway chairman Warren Buffet with $52 billion, and Slim with $49 billion.

"The world's third-richest man is $19 billion richer this year and catching up with Americans Bill Gates and Warren Buffett, thanks to a strong Mexican equities market and the performance of his wireless telephone company, America Movil," Forbes said. It was the biggest single-year gain in a decade, the magazine added.

Slim controls Latin America's largest mobile phone company America Movil, as well as fixed-line giant Telefonos de Mexico, and industrial and retail conglomerate Grupo Carso whose operations range from coffee shops to building oil rigs.

Slim spokesman Arturo Elias Ayub said Slim doesn't give the listing too much importance, since much of the increase is due to gains in the Mexican stock market.

The market's leading IPC index rose 48.6% last year, with America Movil outperforming that with a 57.8% gain, adding another 5.7% by Forbes' cut-off date of Feb. 9.

Slim's growing fortune generates some ambivalence in Mexico, where admiration of his business skill is countered by indignation at a country with 50 million poor people housing one of the world's very richest people.

At the same time, Telmex and America Movil are frequently criticized for the lack of competition in the local telecommunications market, which they dominate.

"I wish there were 10 or 20 like him, giving employment across the country," Elias Ayub said in a phone interview. "He doesn't accumulate the money under the mattress, it's invested in companies that are creating employment, and growing abroad."

Elias Ayub confirmed reports that Slim plans to donate money to the Carso and Telmex foundations through his infrastructure development company Ideal. He said Slim will give details of the plan at a press conference on Monday.

The Forbes list included other Mexicans, among them media moguls Ricardo Salinas Pliego and Emilio Azcarraga Jean, silver mining and retail businessman Alberto Bailleres, brewing family member Maria Aramburuzabala, and cement maker Lorenzo Zambrano.

Lakshmi Mittal of India, chief executive and chairman of steel giant Arcelor-Mittal, was fifth on the list with $32 billion. Mittal is the biggest steel maker in Mexico, where it operates a four-million-ton-a-year slab plant and last year agreed to buy neighboring Sicartsa for $1.4 billion, adding 2.7 million tons of long steel products.

-By Anthony Harrup, Dow Jones Newswires; (5255) 5080 3450, anthony.harrup@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 9th March 2007