Axtel SAB surged to a four-year high on speculation the Mexican telephone company may be the target of a merger or takeover.
Axtel’s shares rose 9.8 percent in Mexico City. The move extended this week’s rally to 23 percent, the most in three years. By comparison, Mexico’s benchmark IPC index climbed 0.9 percent Friday, and was up 1.1 percent on the week.
The speculation was fueled by comments from executives at Alestra SA, the telecommunications unit of the conglomerate Alfa SAB, who said on a July 22 conference call that growth is a priority, and that they would consider mergers and acquisitions. According to Juan Carlos Minero, a trader with Black Wall Street Capital Partners in Mexico City, Axtel would be a natural target.
“Alestra publicly said, ’We are open for mergers and acquisitions, and we’re looking,’” Minero said in an interview.
Alestra, which specializes in corporate phone service, had previously said it’s interested in the residential market.
Alfa declined to comment about Alestra’s growth plans. Axtel said in a statement to the stock exchange that it had no information to disclose.