Boston, MA 07\/03\/2014 (wallstreetpr) \u2013 AT&T Inc. (NYSE:T)<\/b>, keen to get its deal with DIRECTV (NASDAQ:DTV)<\/b> through regulatory approval, unloaded interest in Latin America to clear the way for the transaction. The company announced $49 billion buyout offer for Direct TV.<\/p>\n
In order to avoid any conflict of interest that may derail the deal with Direct TV, AT&T Inc agreed to withdraw its interest in America Movil SAB de CV (ADR) (NYSE:AMX)<\/b>, which is a direct competitor of Direct TV in television service. The company also announced the withdrawal from the board of America Movil.<\/p>\n
Boost To Purchase<\/b><\/p>\n
AT&T Inc. (NYSE:T) sold its 8.3 percent stake in America Movil to Inmobiliaria Carso, which is a holding company of Carlos Slim, the billionaire investor with controlling stake in America Movil.<\/p>\n
The sale of interest in America Movil (NYSE:AMX) has twin impact on AT&T Inc. (NYSE:T). First, the transaction allows the company to approach its deal with Direct TV without fear of conflict of interest. Second, the transaction boosts the company\u2019s acquisition account for Direct TV.<\/p>\n
The company will receive a total of $5.57 billion from the sale of the stake, which is expected to boost its $49 billion proposal for Direct TV. AT&T Inc. (NYSE:T) will first receive $4.57 billion after the deal closes and the balance of $1 billion after 60 days following the close of the transaction with America Movil.<\/p>\n
Careful Approach<\/b><\/p>\n
AT&T Inc. (NYSE:T) is careful not to botch its deal with Direct TV because of regulatory concerns. That is why the company has moved to eliminate its stake in America Movil. The company has had successful deals with the most prominent one being its bid for rival T-Mobile US Inc (NYSE:TMUS)<\/strong>, which failed because of regulatory concerns.<\/p>\n The takeover of Direct TV will make AT&T Inc. (NYSE:T) a leading content distributor across platforms such as TV, mobile and broadband. The move to acquire Direct TV also comes as a diversification attempt for AT&T Inc. (NYSE:T) as the company seeks to boost revenue at a time when the telecom industry is becoming increasingly competitive.<\/p>\n","protected":false},"excerpt":{"rendered":" Boston, MA 07\/03\/2014 (wallstreetpr) \u2013 AT&T Inc. (NYSE:T), keen to get its deal with DIRECTV (NASDAQ:DTV) through regulatory approval, unloaded interest in Latin America to […]<\/p>\n","protected":false},"author":2,"featured_media":24505,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[263],"tags":[3452,3451,1648,3051,6864,1705,1706,1686,1104,4213,4214,4212],"stock_ticker":[],"class_list":["post-27011","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-america-movil-sab-de-cv-adr","tag-america-movil-sab-de-cv-adr-nyseamx","tag-att-inc-nyset","tag-att-inc","tag-directv","tag-directv-nasdaqdtv","tag-nasdaqdtv","tag-nyseamx","tag-nyset","tag-nysetmus","tag-t-mobile-us-inc","tag-t-mobile-us-inc-nysetmus","entry"],"acf":[],"yoast_head":"\n