AT&T will divest its interest in America Movil to help facilitate the regulatory approval of its acquisition of DirecTV (DTV). The American telecom will divest its 73 million L shares of America Movil, and all of its AA shares. America Movil board members designated by AT&T will also resign from the board immediately to avoid any possible conflict of interest.
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TheStreet Ratings team rates AMERICA MOVIL SA DE CV as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICA MOVIL SA DE CV (AMX) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk."