The Chief Strategy Officer of AT&T Inc. – Mr. John Stankey said that the carrier saw a lot of near-term and long-term options for AT&T in Latin America and is poised for acquisitions in Mexico.
“In particular, Mexico, if you step back and think about Mexico, is the place that is prone to move into an incredible growth cycle,” Mr. Stankey said in a statement cited by the Wall Street Journal. “So yes, we are intrigued by it.”
At the moment AT&T is focused on completing the planned acquisition of the satellite broadcaster DirecTV. The deal is estimated to $48.5 billion. The company, however, is shifting its focus towards Mexico, where America Movil SAB plans to dispose of some operations and by this clear some of the market for a new competitor.
According to a person with knowledge of the matter, AT&T is one of the several potential buyers, which America Movil has contacted. AT&T held an 8% minority stake in America Mobil, but sold it back to the company in June 2014.
Speaking of possible deals, Mr. Stankey said in a statement at an investor conference, which was cited by the Wall Street Journal: “Sometimes you dont get to pick when they show up. I think there is the possibility that depending on the circumstances and valuation and size and regulatory dynamics, that something could happen in shorter order and something could take longer. When you are in the M&A game, you learn that you cant always force your timing.”
Mr. Stankey also explained that the fact that the U.S.-based company has previous experience in Latin America and a shared border with Mexico has made the region even more attractive.
AT&T Inc. rose by 0.75% on Tuesday in New York to close at $34.95 per share, marking a one-year change of +1.10%. The company is valued at $178.92 billion. According to CNN Money, the 21 analysts offering 12-month price forecasts for AT&T Inc. have a median target of $36.00, with a high estimate of $42.00 and a low estimate of $32.00. The median estimate represents a +3.00% increase from the last price of $34.95.
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