Televisa Posts Weekly Decline on Blocked Wireless Deal: Mexico City Mover
Grupo Televisa SAB posted its biggest weekly drop in almost three years as investors braced for an antitrust ruling on the company’s plans to enter the wireless business.
Televisa, the world’s largest Spanish-language broadcaster, fell 9.1 percent over the past five days to 51.73 pesos for the biggest weekly decline since March 2009. The shares closed at their lowest level since Oct. 3.
Mexico’s Federal Competition Commission voted 3-2 to block Televisa’s planned $1.6 billion deal for a 50 percent stake in mobile-phone provider Grupo Iusacell SA (CEL*), El Universal newspaper reported Jan. 25, citing unidentified people. The agency said it won’t officially disclose the ruling until the parties have been legally notified, and Televisa has declined to comment.
“I see it as negative for the company,” said Jorge Lagunas, who oversees about $200 million as a money manager at Mexico City-based Grupo Financiero Interacciones SA. “The company needs to look for other vehicles to figure out what to do to participate in quadruple-play more quickly.”
Quadruple-play refers to packages of home-phone, Internet, television and mobile services. Televisa already offers the first three through its cable and satellite units.
Televisa had already agreed to spend $1.6 billion by the end of last year to acquire debt in Iusacell that would be convertible to shares when the deal was approved by the antitrust agency. Televisa hasn’t disclosed whether it could get its money back if the deal is rejected.
Lagunas sold shares this week and said he would start buying again if the stock price dropped to 50 pesos.
To contact the reporters on this story: Crayton Harrison in Mexico City at tharrison5@bloomberg.net; Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net
To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net
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