NEW YORK (TheStreet) -- Telefonica (TEF) is reportedly in talks over a possible deal in Mexico, where it has been looking for acquisitions for months to strengthen its position against former monopoly American Movil (AMX), the company said, addiing that it hadn't reached any agreement.
Any deal was not likely to be imminent, sources told Reuters.
The web site El Confidencial reported Telefonica was close to acquiring Mexico's third largest wireless telecoms company Iusacell, worth up to $4 billion, according to sources.
Telefonica has about 20% of Mexico's cellphone market while Iusacell has about 8% percent, well behind American Movil which has about 70%, Reuters said.
Shares of Telefonica are slightly higher in morning trade.
TheStreet Ratings team rates TELEFONICA SA as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate TELEFONICA SA (TEF) 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 reasonable valuation levels, notable return on equity and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins."