NEW YORK (TheStreet) --Shares of America Movil SAB de CV (AMX) finished up 5.03% to $20.68 on heavy volume this afternoon, following CEO Carlos Slim's decision to buy out AT&T's (T) $5.9 billion stake in the company, Bloomberg reports.
AT&T owns an 8.3% stake in the Mexico-based wireless communications service company, which includes 24% of America Movil's voting shares, and is selling due to its purchase of Direct-TV (DTV), America Movil's pay-TV competitor in Latin America.
Slim's holding company, Inmobiliaria Carso (IBYNF), will acquire AT&T's stake, but it didn't disclose how much it would pay, Bloomberg added.
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Separately, 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 expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and relatively poor performance when compared with the S&P 500 during the past year."