Why American Movil (AMX) Stock Is Up Today

NEW YORK (TheStreet) -- Shares of American Movil SAB de CV (AMX) are up 2.37% to $26.32 after it was reported that the company controlled by billionaire Carlos Slim contacted potential suitors including AT&T (T) and SoftBank (SFTBF) as it prepares to sell assets along the east coast of Mexico that could be worth up to $17.5 billion, sources told Bloomberg.

The company is also pitching the sale to BCE Inc.'s (BCE) Bell Canada and China Mobile (CHL) , sources said. The sale will include American Movil's infrastructure in a strip of states from north to south along Mexico's eastern coast, according to sources.

The assets could be valued at five to seven times earnings before interest, taxes, depreciation and amortization of $2.5 billion, sources told Bloomberg, implying a value of as much as $17.5 billion. America Movil hasn't yet asked for bids because the preliminary information, or teasers, didn't provide enough details for a company to make an offer, sources added.

 
The Mexico City-based carrier, which commands 70% of the local wireless market and 80% of land lines, is selling assets in its biggest market to appease regulators as antitrust penalties curb profit. The company may get penalties revoked if it cuts market share below 50%.
 

TheStreet Ratings team rates AMERICA MOVIL SA DE CV as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

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