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America Movil Front Runner in Spanish Network Bid
Published on:
Mexico based America Movil has been named as the front-runner in bidding to buy the Spanish mobile network, Yoigo after its majority shareholder, TeliaSonera put the company up for sale.
If correct, then the Spanish network would add to America Movil's stakes in Austria and the Netherlands.
It had been expected that one of the three other incumbent networks might make an offer for the company, but it was noted by the Spanish newspaper, Expansion that Yoigo's 3G license makes that difficult.
No operator is allowed to own two 3G licenses, so Yoigo would have to surrender its license back to the regulator before any takeover could be completed. Although not unheard of, it would mean that a buyer is acquiring just the customer base and network infrastructure.
Such a situation would push down the price offered, leaving TeliaSonera likely to prefer an outside bidder. The company is said to be looking for bids in the region of US$1.2 billion.
Teliasonera owns 76.56% of the Spanish mobile network. According to our records, ACS, a construction and services group, has a 17 percent stake, FCC a 3.4 percent stake and Telvent a 3 percent stake.
Yoigo was awarded the country's fourth mobile license in 2000 during the height of the 3G licenses bubble. Known at the time as Xfera the company struggled to launch its network and after several shareholders sold their stakes to Teliasonera, the network launched in June 2006.
On the web: Expansion
Tags: [america movil] [teliasonera] [yoigo] [Spain]
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